The Indiana State Treasurer’s office announced a new tax credit worth up to $500 beginning taxable year 2024 for contributions into INvestABLE Indiana accounts. All Indiana taxpayers who contribute to an Indiana ABLE account are eligible for the credit.
Indiana Achieving a Better Life Experience (ABLE) Authority implements the state’s qualified INvestABLE Indiana plan by supporting access to ABLE accounts in the state. These accounts are 529A accounts, which allow individuals with disabilities and their caregivers to save for future expenses while not compromising access to public benefits, such as Supplemental Security Income (SSI) and Medicaid.
“This new tax credit allows those individuals with disabilities and the people who care for them greater ability to save money and better take care of themselves,” said Indiana State Treasurer Daniel Elliott, the Chairman of the INvestABLE board. “Thanks to the work of dedicated public servants like Rep. Julie Olthoff, Sen. Travis Holdman and countless others, this tax credit will help our most vulnerable Hoosiers and better ensure that they will be taken care by those who love them.”
With the addition of the tax credit, individuals with disabilities and their caregivers living in Indiana will be better prepared financially to save for current and future necessities.
The tax credit is the result of Indiana’s House Bill 1303. Starting January 1, 2024, taxpayers with Indiana ABLE Accounts will be entitled to the credit against an adjusted gross income tax that is equal to the least amount of the following options:
• 20% of the amount of the total contributions that are made to an account(s) that are an Indiana ABLE 529A savings plan during the taxable year,
• $500 or
• Amount of the taxpayer’s adjusted gross income tax for the taxable year, then reduced by the sum of all the allowable credits.
To learn more about INvestABLE accounts for you or a loved one, visit In.SaveWithAble.com.