Tax Deductions & Other ABLE Incentives,
March 2018
Remember those ABLE Deductions!
We're one month away from tax-day. If you're a Maryland
resident and made contributions to a Maryland ABLE account in 2017, don’t
forget to deduct those contributions on
your 2017 Maryland income tax form.
Top three advantages of the Maryland state income tax deduction for ABLE accounts:
- Each beneficiary or individual Maryland income tax filer who contributes to a Maryland ABLE account can deduct up to $2,500 from his/her Maryland income. (If you have contributed to more than one Maryland ABLE account, you may claim a tax deduction for each of those accounts).
- Joint filers can deduct up to $5,000 from their Maryland income.
- Contributions in excess of $2,500 can be deducted for up to the next 10 years.
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Your Savings, Incentivized
Do I pay taxes on the ABLE account earnings?
- No. Investment earnings on the money invested in an ABLE account grow tax-deferred.
Do I pay taxes on the withdrawals from the ABLE account?
- No. Contributions and investment earnings distributed from an ABLE account are free from taxes provided they are used for qualified disability expenses.
Are contributions to an ABLE account made by someone other than the beneficiary taxable?
- No. Contributions to an ABLE account by someone other than the beneficiary (person for whom the account is established) are considered a completed gift from the contributor and are eligible for the annual gift tax exclusion, up to $15,000.
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ABLE Case Summary Series
The ABLE National Resource Center is launching an "ABLE
Case Summary Series." The purpose of this series is to help
ABLE-related stakeholders, including current and future account holders, better
understand how an ABLE account can complement other strategies to improve
health, independence and quality of life. ABLE Case Summaries will be released
periodically throughout 2018.
The first in this
six-part Case Summary Series explores the impact of an ABLE account on
Social Security and SSI Disability Benefits
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Your Money, Your Goals
The Consumer
Financial Protection Bureau (CPFB) has supplemented its financial empowerment
toolkit, "Your Money, Your Goals," with a companion guide aimed at
people with disabilities. Your Money, Your Goals consists of a set of modules
for use by social service organizations to work with people to help set
financial goals and solve financial problems, and is designed to be integrated
into their daily work with the people they serve.
The companion
guide includes 11 new tools that discuss how to:
- Set up an Achieving a Better Life Experience (ABLE) Account and
build savings
- Pay for assistive technology to achieve independence
- Understand how income from work impacts Social Security Income
(SSI)
- Identify financial abuse and exploitation and how to get
assistance
ABLE Near You
Want to learn more about ABLE during one of our outreach presentations? See our schedule below and contact us at questions@marylandable.org for more information.
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