Department of the Treasury

Internal Revenue Service

Publication 907

Cat. No. 15308H

Tax Highlights

for Persons 

With

Disabilities

For use in preparing

2023 Returns

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Future Developments

For the latest information about developments related to 

Pub. 907, such as legislation enacted after this publication 

was published, go to IRS.gov/Pub907.

What’s New

Annual contribution limit. For 2023, the maximum 

amount that can be contributed to your ABLE account is 

$17,000. Certain employed ABLE account beneficiaries 

may contribute a limited additional amount. See Contribution limitation, later.

Retirement savings contributions credit (saver’s 

credit) income limits increased. For 2023, your modified adjusted gross income must be not more than 

$36,500 ($73,000 if married filing jointly; $54,750 if head 

of household). See Credit for Qualified Retirement Savings Contributions, later.

Introduction

An ABLE account. The Stephen Beck, Jr., Achieving a 

Better Life Experience Act of 2014 (ABLE) was enacted to 

help people with disabilities or who are blind save money 

in a tax-favored ABLE account to maintain health, independence, and quality of life. Compare ABLE programs on 

the websites of state governments to see which program 

is best suited for you. See ABLE Account, later.

my Social Security account. Social security beneficiaries can obtain helpful information from the Social Security 

Administration's website with a my Social Security account. See Social Security and Railroad Retirement Benefits, later.

This publication concerns people with disabilities and 

those who care for them. It includes highlights about:

• Income,

• Itemized deductions,

• Tax credits,

• Household employers,

• Business tax incentives, and

• ABLE accounts.

You will find most of the information you need to complete your tax return in its instructions.

See How To Get Tax Help at the end of this publication 

for information about getting publications, forms, and free 

tax services.

Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue 

Service, Tax Forms and Publications, 1111 Constitution 

Ave. NW, IR-6526, Washington, DC 20224. Although we 

Dec 19, 2023
can’t respond individually to each comment received, we 

do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax 

returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or viewing the categories listed.

Getting tax forms, instructions, and publications. 

Go to IRS.gov/Forms to download current and prior-year 

forms, instructions, and publications.

Ordering tax forms, instructions, and publications. 

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order 

prior-year forms and instructions. The IRS will process 

your order for forms and publications as soon as possible. 

Don’t resubmit requests you’ve already sent us. You can 

get forms and publications faster online.

Income

All income is taxable unless it is specifically excluded by 

law. The following discussions highlight some taxable and 

nontaxable income items. For information about distributions from an ABLE account, see ABLE Account, later.

Dependent Care Benefits

Dependent care benefits include the following.

• Amounts your employer paid directly to you or your 

care provider for the care of your qualifying person(s) 

while you worked.

• The fair market value (FMV) of care in a daycare facility provided or sponsored by your employer.

• Pre-tax contributions you made under a dependent 

care flexible spending arrangement.

Exclusion or deduction. If your employer provides dependent care benefits under a qualified plan, you may be 

able to exclude these benefits from your income. Your employer can tell you whether your benefit plan qualifies. To 

claim the exclusion, you must complete Part III of Form 

2441, Child and Dependent Care Expenses.

If you are self-employed and receive benefits from a 

qualified dependent care benefit plan, you are treated as 

both employer and employee. Therefore, you wouldn’t get 

an exclusion from wages. Instead, you would get a deduction on one of the following Form 1040 or 1040-SR schedules: Schedule C, line 14; Schedule E, line 19 or 28; or 

Schedule F, line 15. To claim the deduction, you must use 

Form 2441.

The amount you can exclude or deduct is limited to the 

smallest of the following.

1. The total amount of dependent care benefits you received during the year.

2. The total amount of qualified expenses you incurred 

during the year.

3. Your earned income.

4. Your spouse's earned income.

Statement for employee. Your employer must give you a 

Form W-2 (or similar statement) showing in box 10 the total amount of dependent care benefits provided to you 

during the year under a qualified plan. Your employer will 

also include any dependent care benefits over $5,000 for 

2023 in your wages shown on your Form W-2 in box 1.

Qualifying person(s). A qualifying person is any of 

the following.

• A qualifying child who is under age 13 whom you can 

claim as a dependent. If the child turned 13 during the 

year, the child is a qualifying person for the part of the 

year they were under age 13.

• Your disabled spouse who isn’t physically or mentally 

able to care for themselves.

• Any disabled person who wasn’t physically or mentally 

able to care for themselves whom you can claim as a 

dependent (or could claim as a dependent except that 

the person had gross income of $4,700 or more or 

filed a joint return).

• Any disabled person who wasn’t physically or mentally 

able to care for themselves whom you could claim as 

a dependent except that you (or your spouse if filing 

jointly) could be claimed as a dependent on another 

taxpayer's 2023 return.

For information about excluding benefits on Form 1040, 

Form 1040-SR, or Form 1040-NR, see Form 2441 and its 

instructions.

Social Security and Railroad 

Retirement Benefits

my Social Security account. Social security beneficiaries may quickly and easily obtain the following information from the Social Security Administration's website with 

a my Social Security account.

• Keep track of your earnings and verify them every 

year.

• Get an estimate of your future benefits if you are still 

working.

• Get a letter with proof of your benefits if you currently 

receive them.

• Change your address.

• Start or change your direct deposit.

• Get a replacement Medicare card.

• Get a replacement SSA-1099 or SSA-1042S for the 

tax season.

2 Publication 907 (2023)
For more information and to set up an account, go to 

SSA.gov/MyAccount.

If you received social security or equivalent tier 1 railroad retirement (RRTA) benefits during the year, part of 

the amount you received may be taxable.

Are any of your benefits taxable? If the only income 

you received during the year was your social security or 

equivalent tier 1 RRTA benefits, your benefits are generally not taxable.

If you received income during the year in addition to social security or equivalent tier 1 RRTA benefits, part of 

your benefits may be taxable if all of your other income, including tax-exempt interest, plus half of your benefits are 

more than:

• $25,000 if you are single, head of household, or qualifying surviving spouse;

• $25,000 if you are married filing separately and lived 

apart from your spouse for all of 2023;

• $32,000 if you are married filing jointly; or

• $0 if you are married filing separately and lived with 

your spouse at any time during 2023.

For more information, see the instructions for Form 

1040 or 1040-SR, lines 6a and 6b, and Pub. 915, Social 

Security and Equivalent Railroad Retirement Benefits.

Supplemental Security Income (SSI) payments. Social security benefits don’t include SSI payments, which 

aren’t taxable. Don’t include these payments in your income.

Disability Pensions

If you retired on disability, you must include in income any 

disability pension you receive under a plan that is paid for 

by your employer. You must report your taxable disability 

payments as wages on line 1 of Form 1040 or 1040-SR 

until you reach minimum retirement age. Minimum retirement age is generally the age at which you can first receive a pension or annuity if you aren’t disabled.

You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 

See Pub. 524, Credit for the Elderly or the Disabled.

Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension 

or annuity. Report the payments on Form 1040 or 

1040-SR, lines 5a and 5b. See Pub. 575, Pension and Annuity Income.

Terrorist attacks. Don’t include in income the disability 

payments you receive for injuries incurred as a direct result of terrorist attacks directed against the United States 

(or its allies), whether outside or within the United States. 

In the case of the September 11 attacks, injuries eligible 

for coverage by the September 11 Victim Compensation 

Fund are treated as incurred as a direct result of the attack. However, you must include in your income any 

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amounts that you received that you would have received in 

retirement had you not become disabled as a result of a 

terrorist attack. Accordingly, you must include in your income any payments you receive from a 401(k), pension, 

or other retirement plan to the extent that you would have 

received the amount at the same or later time regardless 

of whether you had become disabled.

Contact the company or agency making these 

payments if it incorrectly reports your payments 

as taxable income to the IRS on Form 1099-R, 

Distributions From Pensions, Annuities, Retirement or 

Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to 

request that it reissue the form to report some or all of 

these payments as nontaxable income in box 12 (using 

code J) of Form W-2, or in box 1 of Form 1099-R but not in 

box 2a. If income taxes are being incorrectly withheld from 

these payments, you may also submit Form W-4P, Withholding Certificate for Pension or Annuity Payments, to the 

company or agency to stop the withholding of income 

taxes from the payments.

Disability payments you receive for injuries not incurred 

as a direct result of a terrorist attack, or for illnesses or diseases not resulting from an injury incurred as a direct result of a terrorist attack, cannot be excluded from your income under this provision, but may be excludable for 

other reasons as described in this publication.

Retirement and profit-sharing plans. If you receive 

payments from a retirement or profit-sharing plan that 

doesn’t provide for disability retirement, don’t treat the 

payments as a disability pension. The payments must be 

reported as a pension or annuity.

Accrued leave payment. If you retire on disability, any 

lump-sum payment you receive for accrued annual leave 

is a salary payment. The payment isn’t a disability payment. Include it in your income in the tax year you receive 

it.

See Pub. 525, Taxable and Nontaxable Income.

Military and Government Disability 

Pensions

Generally, you must report disability pensions as income, 

but don’t include certain military and government disability 

pensions. See Pub. 525.

VA disability benefits. Don’t include disability benefits 

you receive from the Department of Veterans Affairs (VA) 

in your gross income. If you are a military retiree and don’t 

receive your disability benefits from the VA, see Pub. 525 

for more information.

Don’t include in your income any veterans' benefits 

paid under any law, regulation, or administrative practice 

administered by the VA. These include:

• Education, training, and subsistence allowances;

• Disability compensation and pension payments for 

disabilities paid to veterans or their families;

• Grants for homes designed for wheelchair living;

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Publication 907 (2023) 3
• Grants for motor vehicles for veterans who lost their 

sight or the use of their limbs;

• Veterans' insurance proceeds and dividends paid to 

veterans or their beneficiaries, including the proceeds 

of a veteran's endowment policy paid before death;

• Interest on insurance dividends left on deposit with the 

VA;

• Benefits under a dependent-care assistance program;

• The death gratuity paid to a survivor of a member of 

the U.S. Armed Forces who died after September 10, 

2001; or

• Payments made under the VA's compensated work 

therapy program.

Other Payments

You may receive other payments that are related to your 

disability. The following payments aren’t taxable.

• Benefit payments from a public welfare fund, such as 

payments due to blindness. 

• Workers' compensation for an occupational sickness 

or injury if paid under a workers' compensation act or 

similar law. 

• Compensatory (but not punitive) damages for physical 

injury or physical sickness. 

• Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of 

injuries. 

• Compensation for permanent loss or loss of use of a 

part or function of your body, or for your permanent 

disfigurement. 

Long-Term Care Insurance

Long-term care insurance contracts are generally treated 

as accident and health insurance contracts. Amounts you 

receive from them (other than policyholder dividends or 

premium refunds) are generally excludable from income 

as amounts received for personal injury or sickness. See 

Pub. 525.

Accelerated Death Benefits

You can exclude from income accelerated death benefits 

you receive on the life of an insured individual if certain requirements are met. Accelerated death benefits are 

amounts received under a life insurance contract before 

the death of the insured. These benefits also include 

amounts received on the sale or assignment of the contract to a viatical settlement provider. This exclusion applies only if the insured was a terminally ill individual or a 

chronically ill individual. See Pub. 525.

Itemized Deductions

If you file Form 1040 or 1040-SR, to lower your taxable income, you can generally claim the standard deduction or 

itemize your deductions, such as medical expenses, using 

Schedule A (Form 1040). For impairment-related work expenses, use the appropriate business form (1040 Schedules C, E, and F; or Form 2106, Employee Business Expenses).

Medical Expenses

When figuring your deduction for medical expenses, you 

can generally include medical and dental expenses you 

pay for yourself, your spouse, and your dependents.

Medical expenses are the cost of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs 

for treatments affecting any part or function of the body. 

They include the costs of equipment, supplies, diagnostic 

devices, and transportation for needed medical care and 

payments for medical insurance.

You can deduct only the amount of your medical and 

dental expenses that is more than 7.5% of your adjusted 

gross income shown on Form 1040 or 1040-SR, line 11.

The following list highlights some of the medical expenses you can include in figuring your medical expense deduction.

• Artificial limbs, contact lenses, eyeglasses, and hearing aids.

• The part of the cost of Braille books and magazines 

that is more than the price of regular printed editions.

• Cost and repair of special telephone equipment for 

hearing-impaired persons.

• Cost of a wheelchair used mainly for the relief of sickness or disability, and not just to provide transportation 

to and from work. The cost of operating and maintaining the wheelchair is also a medical expense.

• Cost and care of a guide dog or other animal aiding a 

person with a physical disability.

• Costs for a school that furnishes special education if a 

principal reason for using the school is its resources 

for relieving a mental or physical disability. This includes the cost of teaching Braille and lip reading and 

the cost of remedial language training to correct a 

condition caused by a birth defect.

• Premiums for qualified long-term care insurance, up to 

certain amounts.

• Improvements to a home that do not increase its value 

if the main purpose is medical care. An example is 

constructing entrance or exit ramps.

4 Publication 907 (2023)
Improvements that increase a home's value, if the 

main purpose is medical care, may be partly included as a medical expense. See Pub. 502, Medical and Dental Expenses.

Impairment-Related Work Expenses

If you are disabled, you can take a business deduction for 

expenses that are necessary for you to be able to work. If 

you take a business deduction for these impairment-related work expenses, they are not subject to the 7.5% limit 

that applies to medical expenses.

You are disabled if you have:

• A physical or mental disability (for example, blindness 

or deafness) that functionally limits your being employed; or

• A physical or mental impairment (including, but not 

limited to, a sight or hearing impairment) that substantially limits one or more of your major life activities, 

such as performing manual tasks, walking, speaking, 

breathing, learning, or working.

Impairment-related expenses defined. Impairment-related expenses are those ordinary and necessary business expenses that are:

• Necessary for you to do your work satisfactorily;

• For goods and services not required or used, other 

than incidentally, in your personal activities; and

• Not specifically covered under other income tax laws.

See Pub. 502.

Tax Credits

This discussion highlights four tax credits which may lower 

your tax due and may be refundable.

Child and Dependent Care Credit

If you pay someone to care for your dependent under age 

13 or your spouse or dependent who is not able to care for 

themselves, you may be able to get a credit of up to 35% 

of your expenses. To qualify, you must pay these expenses so you can work or look for work. The care must be 

provided for:

1. Your qualifying child who is your dependent and who 

was under age 13 when the care was provided;

2. Your spouse who was not physically or mentally able 

to care for themselves and lived with you for more 

than half the year; or

3. A person who was not physically or mentally able to 

care for themselves, lived with you for more than half 

the year, and either:

a. Was your dependent; or

b. Would have been your dependent except that:

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i. They received gross income of $4,700 or 

more;

ii. They filed a joint return; or

iii. You, or your spouse if filing jointly, could be 

claimed as a dependent on someone else's 

2023 return.

You can claim the credit on Form 1040 or 1040-SR. You 

figure the credit on Form 2441.

For more information, see the instructions for Schedule 

3 (Form 1040), line 2, and Pub. 503, Child and Dependent 

Care Expenses.

Credit for the Elderly or the Disabled

You may be able to claim this credit if you are a U.S. citizen or a resident alien and either of the following applies.

• You were 65 or older at the end of 2023.

• You were under 65 at the end of 2023, and retired on 

permanent or total disability.

You can claim the credit on Form 1040 or 1040-SR. You 

figure the credit on Schedule R (Form 1040), Credit for the 

Elderly or the Disabled.

For more information, see the instructions for Schedule 

3 (Form 1040), line 6d, and Pub. 524, Credit for the Elderly 

or the Disabled.

Earned Income Credit

This credit is for workers with low to moderate incomes 

who have a qualifying child or meet other qualifications. 

You can get the credit if your adjusted gross income for 

2023 is less than:

• $17,640 ($24,210 for married filing jointly) if you do not 

have a qualifying child,

• $46,560 ($53,120 for married filing jointly) if you have 

one qualifying child,

• $52,918 ($59,478 for married filing jointly) if you have 

two qualifying children, or

• $56,838 ($63,398 for married filing jointly) if you have 

three or more qualifying children.

To figure the credit, use the worksheet in the Instructions for Form 1040. If you have a qualifying child, also 

complete Schedule EIC (Form 1040), Earned Income 

Credit, and attach it to your Form 1040 or 1040-SR.

Qualifying child. To be a qualifying child, your child must 

be younger than you (or your spouse if married filing 

jointly) and under age 19 or a full-time student under age 

24 at the end of 2023, or permanently and totally disabled 

at any time during 2023, regardless of age.

Earned income. If you are retired on disability, benefits 

you receive under your employer's disability retirement 

plan are considered earned income until you reach minimum retirement age. However, payments you received 

Publication 907 (2023) 5
from a disability insurance policy that you paid the premiums for are not earned income.

More information. For more information, including all the 

requirements to claim the earned income credit, see the 

instructions for Form 1040 or 1040-SR, line 27, and Pub. 

596, Earned Income Credit.

Credit for Qualified Retirement 

Savings Contributions

You may be able to claim the credit for qualified retirement 

savings contributions (also known as the saver’s credit) of 

up to $1,000 (up to $2,000 if filing jointly) if you make eligible contributions to your ABLE account. This is a nonrefundable credit, which means the amount of the credit in 

any year can’t be more than your tax that you would otherwise pay (not counting any refundable credits) for any tax 

year. If your tax liability is reduced to zero because of 

other nonrefundable credits, such as the credit for child 

and dependent care expenses, then you won’t be entitled 

to this credit.

Can you claim the credit? If you make eligible contributions to your ABLE account, you can claim the credit if all 

of the following apply.

1. You were born before January 2, 2006.

2. You aren’t a full-time student (explained later).

3. No one else, such as your parent(s), claim an exemption for you on their tax return.

4. Your adjusted gross income (defined below) isn’t 

more than:

a. $73,000 if your filing status is married filing jointly;

b. $54,750 if your filing status is head of household; 

or

c. $36,500 if your filing status is single, married filing 

separately, or qualifying surviving spouse.

Full-time student. You’re a full-time student if, during 

some part of each of 5 calendar months (not necessarily 

consecutive) during the calendar year, you’re either:

• A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body 

of students in attendance; or

• A student taking a full-time, on-farm training course 

given by either a school that has a regular teaching 

staff, course of study, and regularly enrolled body of 

students in attendance, or a state, county, or local 

government.

You’re a full-time student if you’re enrolled for the number of hours or courses the school considers to be full 

time.

Adjusted gross income. This is generally the amount on 

your 2023 Form 1040, 1040-SR, or 1040-NR, line 11. 

However, you must add to that any exclusion or deduction 

claimed for the year for:

• Foreign earned income,

• Income from bona fide residents of American Samoa, 

and

• Income from Puerto Rico.

Eligible contributions. Include on Form 8880 your contributions made before 2026 to your ABLE account, as defined in section 529A, up to the annual contribution limit, 

to figure the amount, if any, of your retirement savings contributions credit (also known as the saver’s credit).

Reducing eligible contributions. Reduce your eligible 

contributions (but not below zero) by the total distributions 

you received during the testing period from any ABLE account or from any retirement plan. Don’t reduce your eligible contributions by the portion of any distribution that is 

rolled over to another ABLE account.

Distributions received by spouse. Any distributions 

your spouse received are treated as received by you if you 

file a joint return with your spouse both for the year of the 

distribution and for the year for which you claim the credit.

Testing period. The testing period consists of the year 

for which you claim the credit, the period after the end of 

that year and before the due date (including extensions) 

for filing your return for that year, and the 2 tax years before that year.

Maximum eligible contributions. After your contributions are reduced, the maximum annual contribution on 

which you can base the credit is $2,000 per person.

Effect on other credits. The amount of this credit won’t 

change the amount of your refundable tax credits. A refundable tax credit, such as the earned income credit or 

the refundable amount of your child tax credit, is an 

amount that you would receive as a refund even if you 

don’t owe any taxes.

More information on how to figure and report the 

credit. See Form 8880 to determine your credit.

Household Employers

If you pay someone to work in your home, such as a babysitter or housekeeper, you may be a household employer 

who has to pay employment taxes.

A person you hire through an agency is not your employee if the agency controls what work is done and how it 

is done. This control could include setting the fee, requiring regular reports, and providing rules of conduct and appearance. In this case, you do not have to pay employment taxes on the amount you pay. But if you control what 

work is done and how it is done, the worker is your employee. If you possess the right to discharge a worker, that 

worker is generally considered to be your employee. If a 

worker is your employee, it does not matter that you hired 

6 Publication 907 (2023)
the worker through an agency or from a list provided by an 

agency.

To find out if you have to pay employment taxes, see 

Pub. 926, Household Employer's Tax Guide.

Business Tax Incentives

If you own or operate a business, you should be aware of 

the following tax incentives for businesses to help persons 

with disabilities.

• Deduction for costs of removing barriers to the 

disabled and the elderly—This is a deduction a 

business can take for making a facility or public transportation vehicle more accessible to and usable by 

persons who are disabled or elderly. See chapter 7 of 

Pub. 535, Business Expenses.

• Disabled access credit—This is a nonrefundable tax 

credit for an eligible small business that pays or incurs 

expenses to provide access to persons with disabilities. The expenses must be to enable the eligible 

small business to comply with the Americans with Disabilities Act of 1990 as in effect on November 5, 1990. 

See Form 8826, Disabled Access Credit.

• Work opportunity credit—This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment 

rate or other special employment needs. One targeted 

group consists of vocational rehabilitation referrals. 

These are individuals who have a physical or mental 

disability that results in a substantial handicap to employment and who have been referred to the employer 

upon completion of (or while receiving) rehabilitative 

services. See Form 5884, Work Opportunity Credit.

ABLE Account

Overview. Compare ABLE programs on the websites of 

state governments to see which program is best suited for 

you.

• An ABLE account is a tax-favored savings account 

that can accept contributions for an eligible individual 

with a disability or who is blind, and who is the designated beneficiary and owner of the account. The account is used to provide for qualified disability expenses.

• An ABLE account is generally disregarded for purposes of determining eligibility for benefits under Supplemental Security Income (SSI) and certain other 

means-tested federal programs. For further information, go to SSA.gov.

• A designated beneficiary is limited to only one ABLE 

account at a time (for exceptions, see Program-to-program transfer and Rollover, later). If an additional 

ABLE account is opened (other than for receiving a 

rollover or program-to-program transfer), it is still an 

ABLE account if either all contributions made to the 

additional account are returned to the contributors or 

the additional account is transferred into your preexisting ABLE account with any excess contributions and 

excess aggregate contributions being returned to the 

contributors, on or before the due date (including extensions) of your federal income tax return for the year 

in which the additional account was established.

• Earnings in an ABLE account aren't taxed unless a 

distribution exceeds a designated beneficiary’s qualified disability expenses. A designated beneficiary 

doesn't include distributions for qualified disability expenses in their income. Qualified disability expenses 

include any expenses incurred at a time when the designated beneficiary is an eligible individual. The expenses must relate to blindness or disability, including 

expenses for maintaining or improving health, independence, or quality of life.

• Contributions to an ABLE account are not tax deductible and must be in cash or cash equivalents. Anyone, 

including the designated beneficiary, can contribute to 

an ABLE account. An ABLE account is subject to an 

annual contribution limit and a cumulative balance 

limit.

• Upon your death, as a designated beneficiary, any 

state may file a claim (either with the person with signature authority over your ABLE account or the executor of your estate) for the amount of the total medical 

assistance paid to you under the state's Medicaid plan 

after you (or a person with authority to open an ABLE 

account on your behalf) established an ABLE account. 

The amount paid in satisfaction of such a claim is not 

a taxable distribution from your ABLE account. Further, this amount is paid to the state only after all your 

qualified disability expenses have been paid from your 

ABLE account and the amount paid to satisfy the 

state's claim is reduced by the amount of all premiums 

you paid to a Medicaid Buy-In program under that 

state's Medicaid plan.

Who can establish an ABLE account and what are 

the requirements? You may establish an ABLE account 

if your blindness or disability occurred before age 26. As a 

disabled individual, you may be eligible if either of the following applies.

• You are entitled to benefits based on blindness or disability under title II or XVI of the Social Security Act.

• You file a disability certification under the rules of your 

qualified ABLE program, which will include information 

regarding your diagnosis relating to your relevant impairment or impairments signed by a physician (as defined in section 1861(r) of the Social Security Act). You 

must certify one of the following.

▶ You have a medically determinable physical or mental impairment which results in marked and severe 

functional limitations, which (a) can be expected to result in death, or (b) lasted or can be expected to last 

for a continuous period of not less than 12 months.

▶ You are blind within the meaning of section 1614(a)

(2) of the Social Security Act.

Publication 907 (2023) 7
You may choose to have someone else establish an 

ABLE account for you. If you’re unable to establish an 

ABLE account, your agent, under a power of attorney, or if 

none, your conservator or legal guardian, spouse, parent, 

sibling, grandparent, or a representative payee appointed 

for you by the Social Security Administration (SSA), in that 

order, can establish it for you. However, only you, the designated beneficiary, can have any interest in the account 

during your lifetime.

Loss of eligible individual status. If you establish an 

ABLE account and later cease to be an eligible individual 

because, for example, your impairment goes into remission, then beginning the first day of the next year no contributions may be accepted by your ABLE account. If you 

cease to be an eligible individual, then for each tax year in 

which you are not an eligible individual, the account will 

continue to be an ABLE account, and the ABLE account 

will not be deemed to be distributed. Contributions may 

resume after the impairment recurs. You should notify your 

ABLE program of any changes in your eligibility status.

Distributions from your ABLE account during a period 

you’re no longer an eligible individual aren’t for qualified 

disability expenses and therefore are possibly subject to 

tax. The earnings portion of a distribution (determined under section 72) made from your ABLE account to you 

when you’re no longer an eligible individual may be taxable.

Example. In 2023, the taxpayer is an eligible individual 

with $2,400 in their ABLE account. $2,000 of this is from 

contributions, and $400 is earnings. During 2023, the taxpayer’s disability goes into remission and they are no longer an eligible individual. In 2024, a distribution of $2,400 

is made to the taxpayer from the ABLE account while they 

aren’t an eligible individual. The earnings portion, $400, is 

included in the taxpayer’s gross income after the calculation in Table 1.

Contribution limitation. The total annual contributions 

to an ABLE account (including amounts rolled over from a 

section 529 account, but not other amounts received in 

rollovers and/or program-to-program transfers between 

ABLE accounts) are limited to the annual gift tax exclusion 

amount ($17,000 for 2023), plus certain employed ABLE 

account beneficiaries may make an additional contribution 

up to the lesser of these amounts: (1) the designated beneficiary’s compensation for the tax year, or (2) the poverty 

line amount of $13,590 in the continental United States, 

$15,630 in Hawaii and $16,990 in Alaska. The designated 

beneficiary’s contribution limit is determined using the 

poverty guideline applicable in the state of the designated 

beneficiary’s residence. An employed designated beneficiary isn’t eligible for the increased contribution limit for 

the tax year if any contribution is made on behalf of the 

employee to a qualified defined contribution plan (within 

the meaning of section 414(i)), a section 403(b) plan, or a 

section 457(b) plan. Also, contributions may not exceed 

an annual cumulative limit, which is the same as the 

state’s section 529 qualified tuition program limit.

What if amounts contributed to your ABLE account are greater than the annual contribution limit? 

If amounts contributed to your ABLE account are greater 

than the annual contribution limit, the excess contributions 

and the earnings on those contributions must be returned 

to the contributors. The ABLE program should do this on 

or before the due date (including any extensions) of your 

income tax return and must notify you of this action. The 

due date of your income tax return is generally April 15. 

However, it is your responsibility or the responsibility of the 

person acting on your behalf to ensure that certain contributions of your compensation income are not greater than 

the limit and to request the return of any excess contributions by the ABLE program.

You're subject to a 6% excise tax on the excess contributions and earnings that aren't returned by the ABLE program to the contributors by the due date (including any extensions) of your income tax return. You figure this tax on 

Form 5329, Part VIII, and file it even if you're not otherwise 

required to file a federal income tax return.

What if your ABLE account exceeds the cumulative limit? The cumulative limit for an ABLE account is 

set by each state’s ABLE program. If your ABLE account 

exceeds the cumulative limit, the state’s ABLE program 

will return to the contributors the contributions that caused 

your account to go over the limit, and notify you of this action by the due date (including any extensions) of your income tax return. The due date of your income tax return is 

generally April 15.

Distributions. You can take distributions from your ABLE 

account to pay for any qualified disability expenses, such 

as expenses for maintaining or improving your health, independence, or quality of life. Qualified disability expenses include those for education, housing, transportation, 

employment training and support, assistive technology, 

personal support services, health, prevention and wellness, financial management, administrative services, legal 

fees, expenses for oversight and monitoring, and funeral 

and burial expenses.

If distributions from your ABLE account during a year 

aren't more than your qualified disability expenses for that 

year, no amount is taxable for that year. If the total amount 

distributed during a year is more than your qualified disability expenses for that year, the earnings portion of the 

distribution is included in your income for that year, after 

the calculation in Table 1.

Table 1. Figuring the Taxable Portion of a 

Distribution

The year's total 

distributions for qualified 

disability expenses

x

Earnings portion 

of the year's 

distributions 

=

Amount 

nontaxable for the 

The year's total year

distributions

Example. On August 2, 2023, the taxpayer’s ABLE 

account has a balance of $2,400; $2,000 is from contributions and $400 is earnings. During 2023, the taxpayer has 

qualified disability expenses of $1,600, but they receive 

8 Publication 907 (2023)
distributions from their ABLE account totaling $2,400 on 

August 2, 2023. They figure the nontaxable part of their 

earnings portion as follows.

Distributions for qualified 

disability expenses: 

$1,600

x

Earnings portion 

of the year's 

distributions: 

$400

=

$266.67, the 

nontaxable portion 

Total distributions: of the earnings 

$2,400

The taxpayer will include the difference of $133.33 

($400 – $266.67) in their gross income for 2023.

The tax on any distribution included in your taxable income is increased by 10%. Figure this tax on Form 5329, 

Part II, and file it even if you're not otherwise required to 

file a federal income tax return.

Rollovers, program-to-program transfers, and beneficiary changes. If you need to move your ABLE account 

to another qualified ABLE program to change the designated beneficiary of the account, you can accomplish this 

through a rollover. If the ABLE program permits, funds can 

move from one ABLE account to another through a direct 

program-to-program transfer.

Rollover. You don't include in your gross income any 

amount distributed to you from your ABLE account if it's 

rolled over within 60 days to another ABLE account established for you or for an eligible family member and no 

other rollover has been made within the previous 12 

months. Eligible family member means a sibling only, 

whether by blood or by adoption, and includes a brother, 

sister, stepbrother, stepsister, half brother, and half sister.

Program-to-program transfer. The entire balance of 

your ABLE account can be transferred by your ABLE program to another ABLE program. You can also have your 

ABLE program transfer all or part of the balance in your 

account to an eligible family member. If the entire balance 

is transferred, your first ABLE account is closed after the 

transfer is complete. A program-to-program transfer isn’t a 

distribution so you don’t include any of the transferred 

amount in your gross income.

Change of designated beneficiary. Your ABLE program may permit you to change the beneficiary of your 

ABLE account from yourself to one of your siblings if your 

sibling is an eligible individual for the tax year in which you 

make the change.

Rollover from section 529 tuition account to section 

529A ABLE account. Rollovers may be made without 

penalty from a section 529 tuition account to a section 

529A ABLE account if the beneficiary of the ABLE account is the designated beneficiary of the tuition account 

or is an eligible member of the family. See Notice 2018-58. 

The limit on annual contributions to an ABLE account, discussed earlier in Contribution limitation, applies to these 

rollovers.

Information returns for ABLE accounts. You may receive from your ABLE program the following forms which 

you can use if you need to file an income tax return.

Form 1099-QA, Distributions From ABLE Accounts. An ABLE program issues this form to you to report all distributions made from your ABLE account.

Form 5498-QA, ABLE Account Contribution Information. An ABLE program issues this form to you annually to report contributions (including rollovers), FMV of the 

account, opening of a new account, certification of a qualified account, and your disability code.

If you have any questions about the amounts on these 

forms, you should contact your ABLE program administrator.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax 

preparation may not be available through Free File. Go 

to IRS.gov/FreeFile to see if you qualify for free online 

federal tax preparation, e-filing, and direct deposit or 

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE or download the free IRS2Go app 

for information on free tax return preparation.

Publication 907 (2023) 9
• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Also, the IRS offers Free Fillable Forms, which can 

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN) at no 

cost.

• The Tax Withholding Estimator (IRS.gov/W4App) 

makes it easier for you to estimate the federal income 

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax information in your 

e-filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the 

information required for the preparer to accurately 

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns 

for others should have a thorough understanding of tax 

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

W-2 filing options to CPAs, accountants, enrolled agents, 

and individuals who process Form W-2, Wage and Tax 

Statement, and Form W-2c, Corrected Wage and Tax 

Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our 

highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving taxpayers with limited-English 

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and 

every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or 

account-related issues, go to IRS.gov/LetUsHelp.

CAUTION

!

10 Publication 907 (2023)
Note. Form 9000, Alternative Media Preference, or 

Form 9000(SP) allows you to elect to receive certain types 

of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the 

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to 

IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on 

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for 

iPad. Our eBooks haven’t been tested on other dedicated 

eBook readers, and eBook functionality may not operate 

as intended.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax 

year.

• See payment plan details or apply for a new payment 

plan.

• Make a payment or view 5 years of payment history 

and any pending or scheduled payments.

• Access your tax records, including key data from your 

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account, 

you can access a variety of information to help you during 

the filing season. You can get a transcript, review your 

most recently filed tax return, and get your adjusted gross 

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional 

submit an authorization request to access your individual 

taxpayer IRS online account. For more information, go to 

IRS.gov/TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. Eight in 

10 taxpayers use direct deposit to receive their refunds. If 

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank 

or credit union that can open an account online.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your 

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February 

for returns that claimed the EIC or the additional 

child tax credit (ACTC). This applies to the entire 

refund, not just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax must be 

remitted to the IRS in U.S. dollars. Digital assets are not 

accepted. Go to IRS.gov/Payments for information on how 

to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated 

tax payment directly from your checking or savings account at no cost to you.

• Debit Card, Credit Card, or Digital Wallet: Choose an 

approved payment processor to pay online or by 

phone.

CAUTION

!

Publication 907 (2023) 11
• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/Form1040X 

for information and updates.

Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed 

your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter. You can now 

upload responses to all notices and letters using the 

Document Upload Tool. For notices that require additional 

action, taxpayers will be redirected appropriately on 

IRS.gov to take further action. To learn more about the 

tool, go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may 

not immediately receive written communications in the requested language. The IRS’s commitment to LEP 

CAUTION

!

taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive 

communications, including notices and letters, in English 

until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. 

Go to IRS.gov/LetUsHelp for the topics people ask about 

most. If you still need help, TACs provide tax help when a 

tax issue can’t be handled online or by phone. All TACs 

now provide service by appointment, so you’ll know in advance that you can get the service you need without long 

wait times. Before you visit, go to IRS.gov/TACLocator to 

find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, 

under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. TAS strives 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. To find your advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

12 Publication 907 (2023)
• Download Pub. 1546, The Taxpayer Advocate Service 

Is Your Voice at the IRS, available at IRS.gov/pub/irspdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to TAS at IRS.gov/SAMS. Be sure to not include 

any personal taxpayer information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level 

and who need to resolve tax problems with the IRS. LITCs 

can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, 

LITCs can provide information about taxpayer rights and 

responsibilities in different languages for individuals who 

speak English as a second language. Services are offered 

for free or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, 

Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/

p4134.pdf.

Publication 907 (2023) 13