Category: Taxes

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!

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.

1. 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.
2. 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.
3. 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.