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ABLE Accounts and Tax Season
This may be a silly question but I’m new to the world of ABLE accounts and want to make sure I’m doing everything correctly. Is there anything I have to report with the 2021 tax season? I received Form 5498-QA, and based on what I’ve read, I believe it’s for my records only. I just wanted to ask you all, the experts, first to make sure I’m understanding everything.
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2 Replies
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I’ve had an ABLE account in Maryland for almost 4 years, and I’ve never reported anything from it for tax purposes. Based on this (https://www.marylandable.org/faqs/do-i-have-to-pay-taxes-on-my-account), the only thing you’d ever have to report is if you withdrew money for something that wasn’t a qualified expense.
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Hi Michaela! I must have missed your response somehow, I apologize for the delay in getting back to you. Thank you for this helpful info. I’ll have to research the state where I opened mine (Rhode Island), but I’d be it’s likely the same across states.
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