What you need know about IL ABLE Accounts at tax time.
Tax season is upon us! Here is some important information to keep in mind about your IL ABLE Account when filing your 2022 tax return.
- The Account Owner should have already received tax form 5498 (shows contributions) and tax form 1099QA (shows distributions). If the Account Owner did not receive these forms and contributions were made or took distributions from the Account in 2022, or you can access the 2022 tax forms by logging into the Account online or by calling Customer Service at 888-609-8683.
- Withdrawals from, and earnings in, an IL ABLE Account are exempt from state and federal taxes as long as the withdrawals are used to pay for Qualified Disability Expenses.
- If you are an Illinois taxpayer and you contributed to any IL ABLE Account in 2022, 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 if filing as an individual or $20,000 if filing jointly. Check with your tax advisor about your personal tax situation.
- Additionally, IL ABLE Account Owners who contributed to their own Account may be eligible for the Tax Saver’s Credit.
- As always, consult with a tax advisor with any tax questions about your individual circumstances.
If you have questions or need assistance, call Customer Service at (888) 609-8683; Monday – Friday, 8 a.m. – 5 p.m. Central Time.
Thank you for saving and investing with IL ABLE!