Are distributions taxable on the ABLE Act?
Distributions are tax-free as long as they are used to pay qualified disability expenses that relate to the designated beneficiary’s blindness or disability and help that person maintain or improve health, independence and quality of life. For example, they can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other expenses.
What is the ABLE act?
Stands for Achieving a Better Life Experience Act, was signed into law in December 2014. This new provision authorizes any state to offer its residents the option of setting up an ABLE account. The ABLE account allows people with disabilities, and ...
Who are eligible for the ABLE Act?
An individual is eligible for an ABLE account if that person is diagnosed with blindness or a disability prior to their 26th birthday.
Is spousal support taxable?
Yes, spousal support are taxable to the payee and deductible by the payer.
Is child support taxable?
No, child support payments are not taxable to the payee nor deductible by the payer.
Are alimony payments taxable?
Yes, alimony payments are taxable to the payee and deductible by the payor.