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

Forum|Forum|7 years ago
June 3, 2019
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I have received form 5498-QA which shows contributions to ABLE account, no money was withdrawn, money was only deposited to ABLE account.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?

Best answer by RachelW33

If no money was withdrawn from the ABLE account, you do not need to input the Form 5498-QA for your return.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.

RachelW33

Answer

Alumni - Expert

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: