If you received a distribution reported to you on IRS form 1099-Q from the CollegeAdvantage program and any portion of such distribution was not used to pay for qualified higher-education expenses and was not due to the beneficiary's death, disability or receipt of a scholarship, you may be required to include an adjustment on line 35b.
Follow the instructions for items 1 through 3 below for such distributions.
1. You do not have to show on this line the amount of distributions relating to the cost of tuition credits or units that you purchased before Jan. 1, 2000.
2. If you are the CollegeAdvantage account owner or beneficiary and a portion of the distribution reported to you on your CollegeAdvantage form 1099-Q relates to original contributions or purchases by the account owner (or beneficiary) that are not excluded under item 1 above, then the nonearnings 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 for line 35b.
3. Include on line 35b the earnings portion of the distribution reported to you on IRS form 1099-Q to the extent that you have not otherwise included these earnings in Ohio adjusted gross income (line 3 on Ohio form IT 1040) for either the current taxable year or for any previous taxable year or years.
Contribution Carryovers: CollegeAdvantage account owners or benefi ciaries should also reduce any contribution deduction carryovers to future years to the extent that the nonearnings distributions in item 2 above (i) exceed contribution deductions taken in this and prior years and (ii) are refl ected in your contribution deduction carryover to future years' returns.