Questions & Answers

How do I report contributions to my 529A, Achieving a Better Life Experience (ABLE)?

You may subtract the amount you contributed to a 529A, Achieving a Better Life Experience (ABLE), during 2021 up to a total of $2,000 per beneficiary ($4,000 per beneficiary if you're filing as Married Filing Jointly). If you are Married Filing Separately, either you or your spouse may take the subtraction, or you may divide it between you, but the total taken by both of you can't be more than $4,000 per beneficiary.

Example:
William and Paula are married and have two children. During 2021, William and Paula contributed $5,000 to an ABLE account for Child 1 and $5,000 to an ABLE account for Child 2. Even though William and Paula contributed a total of $10,000 during 2021, they may subtract only $8,000 on their 2021 joint tax return because of the limit of $4,000 per beneficiary.

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