Should form 5498-QA ABLE savings contributions be reported in 1040 form?

[meiyappanpal]

I have received form 5498-QA which shows contributions to ABLE account, no money was withdrawn, money was only deposited to ABLE account. Form says I receive copy - B and this information is furnished to IRS. Is there a place in form 1040 that needs to show this deposit?

[Rachel_W · Accepted solution]

If no money was withdrawn from the ABLE account, you do not need to input the Form 5498-QA for your return.  This form is used when you need to determine the end of year value of your investment basis when you have a distribution.

Contributions to ABLE accounts are not deductible on your Federal Tax return; however, they may be deductible on your State return depending on where you live. 

Here are some links you may find helpful regarding ABLE Accounts:

• TurboTax Article on Tax Benefits of ABLE accounts

• https://www.irs.gov/newsroom/irs-reminds-those-with-disabilities-of-new-able-account-benefits

• IRS Publication 907

If you have another question regarding ABLE accounts, please comment below so that I can assist you further.