The topic of ABLE (Achieving a Better Life Experience) accounts has come up recently with several client families.  Here is a quick refresher on the basics of ABLE. A person is eligible to open and use an ABLE account if her/his disability meets the Social Security definition, whether or not s/he has filed for or is receiving Social Security disability benefits and the disability started before s/he turned 46. A person can only have one ABLE account. The basic annual contribution limit for an...

If you readers notice that this blog is late, I have two excuses.  Spring Break and Tax Season.  While it would be more entertaining to write about the former, I am taking a plunge and writing about the latter as it pertains to people with disabilities and some of their situations.  As a disclaimer, I am not a tax professional.  Please consult with your tax professional about your specific situation(s) before making tax decisions.   Q. Is Supplemental Security Income taxable? A. No, SSI is...

Government entities create their own realities ,  governed by the rules that each has put into place.  When I first studied the IRS rules on reporting income, I was surprised to read that the IRS expects people to report and pay tax on income generated through illegal activities, such as selling drugs or stolen property.  In my mind, the word for emphasis in the previous sentence should be “illegal”, but in the collective mind of the IRS and “according to their rules”, the word for emphasis...