Are you thinking of contributing to the Illinois ABLE account of a friend or loved one this year? Good News! If you are an Illinois taxpayer, you can now take a deduction from your Illinois state income taxes when you contribute to an Illinois ABLE account.
That’s right! When filing for tax year 2018 in 2019, Illinois taxpayers who contribute to an Illinois ABLE account can take a deduction of up to $10,000 for individuals and up to $20,000 for married couples filing jointly on their Illinois state income tax. Before taking advantage of the Illinois ABLE tax deduction, consult with your tax advisor.
It’s important to remember that the annual contribution limit to an Illinois ABLE account in 2018 is $15,000 total from all sources. Therefore, some have asked, “How is it possible for an Illinois couple, filing jointly, to contribute $20,000 to an Illinois ABLE account?” The answer is that they can contribute to more than one Illinois ABLE account.
ABLE accounts allow individuals whose disability occurred before age 26, and who meet the SSA definition of disability to save and invest private funds without losing federal means-tested benefits. Before ABLE accounts existed, if you gave a gift of money to someone with disability who receives federal benefits, that gift may have put the individual’s benefits at risk. Often, parents warned grandparents and relatives not to give money to their child with a disability.
ABLE changed that. Now, you can give a gift of money to the ABLE account owner, and the funds will not put the person’s benefits at risk.
Your gift to an Illinois ABLE account can help an individual with a disability pay for many expenses that come with having a disability. Examples include therapy, training, job coaching, accessible equipment, assistive technology, and so much more.
It’s easy to make contributions to an individual’s Illinois ABLE account, and there are several options: You can write a check to the ABLE account owner, you can have a set amount automatically transferred from a bank, savings and loan, or credit union account. You can arrange for a Payroll Direct Deposit directly from your paycheck. Finally, you can contribute online via ugiftable.com. For more information on any of these options, contact Customer Service at 888-609-8683, 8 a.m. – 5 p.m., CT, Monday through Friday.
Click here for more information about Illinois ABLE.
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