Oklahoma Senate
Legislation to provide a tax deduction for STABLE account contributions is filed
Oklahoma STABLE accounts are tax-advantaged savings accounts for eligible individuals with disabilities. They have similar features to normal banking accounts but allow disabled individuals to save and invest money without losing eligibility for public benefits programs like Medicaid or Supplemental Security Income.
Senate Bill 1190 would allow each individual taxpayer to take up to a $10,000 deduction for Oklahoma STABLE account contributions, or a $20,000 deduction for taxpayers filing a joint return. Deductions may be taken for contributions made during a taxable year and up to the due date of a taxpayer’s state income tax return.
“Those living with a disability should be able to contribute to an investment account and still reap the reward of a tax deduction, much like 529 college savings plans,” Pugh said. “I hope Senate Bill 1190 will encourage those with a disability, or caretakers for someone with a disability, to open an Oklahoma STABLE account and participate in an investment portfolio while enjoying the benefits of a tax deduction based on contributions.”
Contributions to an Oklahoma STABLE account can be used for any disability-related expense including basic living expenses, housing, transportation, health and wellness costs, employment training, education and more. An eligible individual for a STABLE account must have developed their disability before the age of 26 and must have been living with their disability for at least one year.
“Parents of those with disabilities and people with disabilities alike should be able to save for future expenses, just like parents who save for their children’s college education,” Pugh said. “Oklahoma STABLE accounts allow this, and this tax deduction will serve as an important incentive for future planning and investment.”
