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.
Some states offer parity, meaning that the contributor’s state of residence may offer a state deduction for putting money into another state’s plan. It would be dependent upon each state’s individual program.
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.
The total annual contributions by you, family and/or friends for calendar year 2017 are $14,000. This limit is tied to the IRS gift tax exclusion. Under current tax law, $14,000 is the maximum amount that people can give as a gift to someone else and not report it to the IRS. The contribution limit increases to $15,000 a year starting in 2018.
Once you are ready to enroll, you can set up your account here on line. When opening a Maryland ABLE account, have ready information about the beneficiary, qualifying disability, and how the ABLE account will be funded.
Here are a few ways to get answers. You can contact us online, give us a call Monday through Friday, at 1-855-563-2253 from 9am-5pm ET or 1-844-888-2253 (TTY) from 9am-8pm ET, or you can browse frequently asked questions.