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.
It’s Tax Season – 3 Things ABLE Account Owners Need to Know!
- If you are an ABLE account owner, you do not pay federal or state taxes on the earnings on your IL ABLE account if your withdrawals are for your disability-related expenses.
- If you owned an ABLE Account in 2017, you should have received tax form 5498 (shows contributions) and tax form 1099QA (shows distributions). For questions about these forms, contact your tax advisor.
- The Treasurer’s office has proposed legislation to the Illinois General Assembly to allow a state income tax deduction for contributions to ABLE accounts. Many disability advocacy groups support this effort. If you want to offer your support, contact your local legislator.
