Skip to content
My Free Taxes
  • Español
  • Español

How do you want to file your taxes for free?

  • File on my own
  • Prepare taxes for me online
  • Prepare taxes for me in person
  • Resources
    • Resource Hub
    • ITIN Resource Hub
    • Volunteer Information
    • Tax Credit Calculator
    • Frequently Asked Questions
  • About My Free Taxes
    • Who We Are
    • News and Media
    • Testimonials
    • Contact Us
  • Partner Portal Login
  • Español
Resources: Recent updates

Understanding CalABLE Accounts

Learn about tax-advantaged CalABLE savings accounts that help individuals with disabilities save without impacting their public benefits.
Updated 10/25/2024
Share:
Share

For most tax filers, receiving a tax refund is a huge stress reliever—a welcome financial boost that can be used for various purposes. But for individuals receiving assistance from programs like Supplemental Security Income (SSI), there’s often a unique concern: the fear that any additional income, even a tax refund, could push them past eligibility thresholds. That’s where CalABLE accounts come into play. In this blog post, we’ll explore how CalABLE accounts can provide peace of mind by offering valuable tax benefits while safeguarding eligibility for crucial assistance programs.

What is a CalABLE Account?

ABLE (Achieving a Better Life Experience) accounts are a specialized savings account designed to help individuals with disabilities and their families save towards disability related expenses; they were created as part of the ABLE Act, and signed into law in 2014. In California, these are known as CalABLE accounts. without jeopardizing their eligibility for government assistance programs like Medicaid and Supplemental Security Income (SSI)

Why open an CalABLE Account?

CalABLE accounts are a game-changer for individuals with disabilities in California. Money in a typical savings account is taken into account when applying for public benefits, such as state disability. However, earnings in a CalABLE account are 100% federal and California state tax deferred and withdrawals to pay for disability related expenses are also tax-free.

By opening a CalABLE account, eligible individuals can save up to $18,000 a year without jeopardizing their eligibility for government assistance programs like Medicaid and Supplemental Security Income (SSI). If you’re receiving Supplemental Security Income (SSI), you can have up to $100,000 in the account without it counting towards the $2,000 asset limit.

This money can be used towards disability related expenses including: rent, mortgage payments, education, property taxes, home improvement changes, transportation, health, and wellness and much more!

Eligibility for a CalABLE account

To qualify for an ABLE account, you or the beneficiary must meet the following criteria:

  • Have blindness or a medically determinable physical or mental impairment that causes significant functional limitations, with the condition starting before the age of 26 and lasting or expected to last at least a year.
    • Please note, that effective January 1, 2026, the age limit for eligibility for ABLE account beneficiaries from having a disability onset before age 26 to before age 46.
  • Be a U.S. citizen AND
  • Meet one of the following conditions:
    • Qualify for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) due to a disability.
    • Experience blindness according to the Social Security Act.
    • Provide a signed diagnosis from a licensed physician if requested.

Still unsure if you are eligible? Use this screener to find out.

About Opening an Account

You’ll need to make an initial deposit of at least $25 to get started and a $1 minimum for any contribution after that. You can save money in a cash option and/or invest it in any of the program’s investment options.

Ready to Open an Account?

Visit CalABLE to see if you qualify and get started today!

Myfreetaxes.org logo

MyFreeTaxes.org is operated by United Ways of California, on behalf of and in partnership with our local United Way members.

United Ways of California improves the health, education and financial results for low-income children and families by enhancing and coordinating the advocacy and community impact work of California United Ways across the state.

Disclaimer: This site is best viewed using the current browser version of Microsoft Edge, Firefox, Chrome and Safari. If you are using an out of date browser or a version of Internet Explorer, you may not experience the full effect when viewing the site.

To access some features on MyFreeTaxes.org and other pages, you may need to disable or configure the settings for your pop-up blocker. Learn more.

  • File for Free
    • File on my own
    • Prepare taxes for me online
    • Prepare taxes for me in person
    • Tax Credit Calculator
  • Resources
    • Resource Hub
    • ITIN Resource Hub
    • Frequently Asked Questions
    • Volunteer Information
  • About My Free Taxes
    • Who We Are
    • Testimonials
    • Contact Us
    • News and Media

Follow United Ways of California

1107 Fair Oaks Ave #12

South Pasadena, CA 91030

myfreetaxes@unitedwaysca.org

(877) 355-8922

© 2025 My Free Taxes
Privacy Policy