Tax facts that you should know about IL ABLE.
- If you are an IL ABLE account owner, earnings in, and withdrawals from, your IL ABLE account are federal and state tax-free as long as withdrawals are used for qualified disability expenses.
- If you are an Illinois taxpayer and you contributed to any IL ABLE account in 2020, you may be able to take a deduction from your Illinois state income taxes.
- The Illinois state income tax deduction is up to $10,000 filing as an individual or $20,000 if filing jointly. Check with your tax advisor about your personal tax
- If you owned an IL ABLE Account in 2020, you should have received tax form 5498 (shows contributions) and tax form 1099QA (shows distributions) from your IL ABLE account. If you did not receive the forms and you made contributions or took distributions in 2020, call Customer Service at 888-609-8683.
- For your personal tax questions, consult with a tax advisor.