How do I prove an eligible expense?›

We don’t need proof of your expenses, but you should have it for your records as the IRS may require you to provide proof of qualified disability expenses in the case of an audit.If you sign up for a Prepaid Card, you can review and manage your card activity online from your separate prepaid account. This will help keep track of your purchases, but you’ll still need to save your receipts in case the IRS asks for them.
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Can I use funds to pay for housing or rent?›

You can use money from an ABLE account for housing expenses. If you’re eligible for SSI, the money must be used within the month it was withdrawn so it doesn’t count as income for the month in determining your SSI eligibility. Plus, having an ABLE account doesn’t affect other housing benefits, like Section 8.
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What happens if I withdraw money for a non-eligible expense?›

You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense could affect your eligibility for SSI benefits, Medicaid or other much-needed benefits under federal or state programs, as could a withdrawal that is applied to a housing expense in any month after the month of the withdrawal.
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What is considered a “qualifying expense”?›

A "qualified disability expense" means any expense related to the beneficiary as a result of living a life with disabilities. These may include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management and administrative services and other expenses which help improve health, independence, and/or quality of life.
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Do I have to pay taxes on my account?›

As long as the money in your Maryland ABLE account is used for eligible expenses, it won’t be counted as income for your state or federal taxes. If a purchase doesn’t qualify as an eligible expense, you’ll have to pay taxes and a 10% penalty on the amount. If you want to know more about the IRS regulations, you can find info here.
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Does having an account affect my other benefits?›

You can keep your federal and state benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.) with an ABLE account. If you receive SSI, there is a $100,000 limit before Social Security benefits are affected.  As long as the money withdrawn is used for eligible expenses, it won’t count towards the limit. Don’t forget that all housing expenses must be paid in the same month the money is withdrawn or be reported as income. All other benefits, like Section 8, are protected regardless of the amount saved in the account. 
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What happens to my state and federal benefits?›

For SSI benefits only, you can have up to $100,000 in the account before the funds start to count against the $2,000 asset limit. Other federal and Maryland state means-tested benefits are not affected, regardless of the balance in the account. 
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Can I make direct deposits into an ABLE account?›

Yes, monthly transfers are a great way to help a Maryland ABLE account grow to reach your yearly goal. Direct deposits, also known as monthly transfers, are automatic contributions that you can set up in just a few steps directly from your account. Look for the “Transfers” button once you’re signed in and follow the set up for Monthly Transfers. 
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