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March 5, 2022
Question

Do I get a tax break for making contributions to my daughter's ABLE account?

  • March 5, 2022
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1 reply

March 5, 2022

No, there is not a specific tax benefit for contributing to your daughter's ABLE account.  Contributions are not tax-deductible.  The contribution may qualify you to claim the Saver's Credit.

 

However, when you make a withdrawal from the ABLE account and spend the money on a qualified expense, you will not pay tax on any of the earnings from the account.

 

To learn more, take a look at the following TurboTax article:

 

What are ABLE Accounts? Tax Benefits Explained

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