Dear Account Owners and their supporters,
Thanksgiving is upon us and we at IL ABLE want to say Thank You to all of the Account Owners (and their Authorized Individuals) who save and invest with IL ABLE Accounts.
It’s Tax Time!
What you need to know about IL ABLE and taxes
Important facts to keep in mind when filing your tax return for 2021.
- If you owned an IL ABLE account in 2021, you should have received tax form 5498 (shows contributions) and tax form 1099QA (shows distributions). If you did not receive these forms and you made contributions or took distributions from your account in 2021, call Customer Service at 888-609-8683.
- If you are an IL ABLE account owner, withdrawals from and earnings in your 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 2021, 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.
- As always, consult with a tax advisor with any personal tax questions.
What You Need to Know About Illinois ABLE Contributions and Tax Deductions
Contributions Made Before Year-End May Qualify for IL Tax Benefit
By contributing to an IL ABLE account, both your loved one with a disability and you may share in the happiness! Why? Because any Illinois taxpayer who contributes to any IL ABLE account at any time during the year may be able to take an Illinois State Income tax deduction for that year. Happiness!
Read More “What You Need to Know About Illinois ABLE Contributions and Tax Deductions”
Contributing to an Illinois ABLE account this Holiday Season? Your contribution may be tax deductible!
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.