New tax credit coming for disabled Hoosiers, caregivers
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A new tax credit worth up to $500 will soon be available to Hoosiers participating in a program meant for those with disabilities.
The Indiana State Treasurer’s office on Tuesday introduced the new credit, which will be available beginning in 2024 if contributions are made into an INvestABLE Indiana account.
The program, run by Indiana Achieving a Better Life Experience Authority, or ABLE, is available to people with disabilities and their caregivers to save up for future expenses and not compromise their access to public benefits.
“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 State Treasurer Daniel Elliott, the Chairman of the INvestABLE board, in a news release. “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 of by those who love them.”
The tax credit stems from legislation enacted in 2022. Starting after the new year, taxpayers with Indiana ABLE accounts can receive the credit against an adjusted gross income tax. The credit may be one of three options but must be the least amount; those options are:
- 20% of the total contributions that are made to an Indiana ABLE 529A savings plan during the taxable year
- $500
- The amount of the taxpayer’s adjusted gross income tax for the taxable year, which is reduced by the sum of all the allowable credits.
You can learn more about the program by clicking here.