For use in preparing

Future Developments

Publication 907

Tax Highlights

for Persons

With

Disabilities

For use in preparing

2025 Returns

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 2025, the maximum

amount that can be contributed to your ABLE account is

$19,000. 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 2025, your modified adjusted gross income must be not more than

$39,500 ($79,000 if married filing jointly; $59,250 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.

Get forms and other information faster and easier at:

• IRS.gov (English)

• IRS.gov/Korean (한국어)

• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)

• IRS.gov/Chinese (中文)

• IRS.gov/Vietnamese (Tiếng Việt)

Jan 7, 2026

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.

Publication 907 (2025) Catalog Number 15308H

Department of the Treasury Internal Revenue Service www.irs.gov

Although we 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.

2

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

2025 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 $5,200 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 2025 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.

Publication 907 (2025)

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 2025;

• $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 2025.

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 1h 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.

Tip: 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

amounts that you received that you would have received in

Publication 907 (2025)

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.

Tip: 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;

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 pol-

icy 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.

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 sick-

ness 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.

Accelerated Death Benefits

• Costs for a school that furnishes special education if a

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.

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

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.

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.

Tip: 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.

4

Publication 907 (2025)

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:

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

claimed as a dependent on someone else's

2025 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 R (Form 1040).

• A physical or mental disability (for example, blindness

Credit for the Elderly or the Disabled

• A physical or mental impairment (including, but not

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.

or deafness) that functionally limits your being employed; or

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

• You were 65 or older at the end of 2025.

• You were under 65 at the end of 2025, 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 R (Form 1040).

• Not specifically covered under other income tax laws.

Earned Income Credit

See Pub. 502.

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

2025 is less than:

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:

i. They had gross income of $5,200 or more;

ii. They filed a joint return; or

Publication 907 (2025)

• $19,104 ($26,214 for married filing jointly) if you do not

have a qualifying child,

• $50,434 ($57,554 for married filing jointly) if you have

one qualifying child,

• $57,310 ($64,430 for married filing jointly) if you have

two qualifying children, or

• $61,555 ($68,675 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 2025, or permanently and totally disabled

at any time during 2025, 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

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

5

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, 2008.

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

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

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

more than:

a. $79,000 if your filing status is married filing jointly;

b. $59,250 if your filing status is head of household;

or

c. $39,500 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:

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

• A full-time student at a school that has a regular teach-

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

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

the worker through an agency or from a list provided by an

agency.

ing staff, course of study, and regularly enrolled body

of students in attendance; or

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 2025 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,

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

Pub. 926, Household Employer's Tax Guide.

and

• Income from Puerto Rico.

6

Publication 907 (2025)

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 busi-

nesses 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 purpo-

ses 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 Rollovers, program-to-program transfers, and beneficiary changes,

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

Publication 907 (2025)

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 deducti-

ble 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.

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,

7

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 2025, 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 2025, the taxpayer’s disability goes into remission and they are no longer an eligible individual. In 2026, 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. Figuring the Taxable Portion of a Distribution.

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 ($19,000 for 2025), 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 $15,650 in the continental United States,

$17,990 in Hawaii and $19,550 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

8

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

The year's total

distributions

Earnings portion

x of the year's

distributions

Amount

= nontaxable for the

year

Example. On August 2, 2025, the taxpayer’s ABLE

account has a balance of $2,400; $2,000 is from contributions and $400 is earnings. During 2025, the taxpayer has

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

distributions from their ABLE account totaling $2,400 on

August 2, 2025. They figure the nontaxable part of their

earnings portion as follows.

Publication 907 (2025)

Distributions for qualified

disability expenses:

$1,600

Total distributions:

$2,400

Earnings portion

of the year's

x

distributions:

$400

$266.67, the

= nontaxable portion

of the earnings

The taxpayer will include the difference of $133.33

($400 – $266.67) in their gross income for 2025.

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.

Publication 907 (2025)

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) pro-

gram 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.

• 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).

9

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 publica-

tions. 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).

Caution: 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

10

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.

Business tax account. If you are a sole proprietor, a

partnership, or an S corporation, you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/businessaccount for

more information.

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/irsvideosASL.

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.

Alternative media preference. Form 9000, Alternative

Media Preference, or Form 9000(SP) allows you to elect to

Publication 907 (2025)

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.

Mobile-friendly forms. You'll need an IRS Online Account (OLA) to complete mobile-friendly forms that require

signatures. You'll have the option to submit your form(s)

online or download a copy for mailing. You'll need scans of

your documents to support your submission. Go to

IRS.gov/MobileFriendlyForms for more information.

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.

Publication 907 (2025)

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.

Caution: 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

11

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.

• 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.

Caution: 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.

IRS Document Upload Tool. You may be able use the

Document Upload Tool to respond digitally to eligible IRS

notices and letters by securely uploading required documents online through IRS.gov. For more information, go to

IRS.gov/DUT.

12

Schedule LEP. 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

taxpayers is part of a multi-year timeline that began providing translations in 2025. 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 the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent

organization within the Internal Revenue Service (IRS).

TAS helps taxpayers resolve problems with the IRS,

makes administrative and legislative recommendations to

prevent or correct the problems, and protects taxpayer

rights. We work to ensure that every taxpayer is treated

fairly and that you know and understand your rights under

the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

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

able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then

come to TAS. Our services are free.

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS

problem is causing financial difficulty, if you’ve tried

and been unable to resolve your issue with the IRS, or

if you believe an IRS system, process, or procedure

just isn't working as it should.

• To get help any time with general tax topics, visit

www.TaxpayerAdvocate.IRS.gov. The site can help

you with common tax issues and situations, such as

what to do if you make a mistake on your return or if

you get a notice from the IRS.

• TAS works to resolve large-scale (systemic) problems

that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS. (Be sure not to include

any personal identifiable information.)

Publication 907 (2025)

How Do I Contact TAS?

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

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

• Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

towww.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights

for

more information about the rights, what they mean to you,

and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and

ensure the IRS is administering the tax law in a fair and

equitable way.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that

all taxpayers have when dealing with the IRS. Go

Publication 907 (2025)

13