College Advantage Addition

If you received a distribution during 2005 reported to you on a 2005 Form 1099Q from the College Advantage program and any portion of such distribution was not used to pay for qualified higher education expenses and was not due to the beneficiarys death, disability, or receipt of a scholarship, you may be required to include an adjustment. Follow the instructions for items 1 through 3 below only for the portion of the distribution that was not used to pay for qualified higher education expenses and was not due to the beneficiarys death, disability, or receipt of a scholarship.

For any portion of the distribution related to Tuition Credits or Tuition Units purchased before January 1, 2000, no adjustment is required.
If you are the College Advantage account owner or beneficiary and a portion of the distribution reported to you on your College Advantage 2005 Form 1099Q relates to original contributions or purchases by the account owner (or beneficiary) which are not excluded under item 1 above, then the non-earnings portion (usually the original contribution or purchase price unless the account has declined in value below these amounts) related to such portion of the distribution must be included in Ohio adjusted gross income to the extent that either the account owner or the beneficiary has taken an Ohio contribution deduction for such contributions or purchases in this or a prior taxable year. Add this adjustment to the total reported here.
If any portion of the distribution reported to you on your College Advantage 2005 Form 1099Q relates to original contributions or purchases to which neither items 1 or 2 above apply, then you must include the non-earnings portion of such portion of the distribution in Ohio adjusted gross income by including it in the total reported here.

Contribution Carry-Over: College Advantage account owners or beneficiaries should also reduce any contribution deduction carry-over to future years to the extent the non-earnings distributions in item 2 above exceed contribution deductions taken in this and prior years and are reflected in your contribution deduction carry-over to future years returns.

Back