The information about a distribution reported on Form 1099-QA needs to be reported on a tax return only if any part of the distribution was used for a purpose other than the support of a disabled individual.
Any amounts distributed in excess of qualified disability expenses must be included in the individual's taxable income and will be subject to a 10% penalty.
Enter 1099-QA Distributions from ABLE Accounts:
- Open your return (if not already open).
- Enter "1099qa" in the Search box.
- Click on "jump to 1099qa" link.
- Enter your information.
Enter 5498-QA ABLE Account Contribution Information:
- Open your return (if not already open).
- Enter "54989qa" in the Search box.
- Click on "jump to 5498qa" link.
- Enter your information.
Just be sure to keep your 1099-QA and 5498-QA forms with your records for future reference.
TurboTax article: What are ABLE Accounts? Tax Benefits Explained
[Edited 2/19/25 | 9:18am PST]
@prmaurath
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