Can you include qualified ABLE medical expenses that was paid on a different checking account in qualified distributions included in federal income on tax return?

[ryannspurrier32]

I have an ABLE account and used over $11,000 on medical expenses this year that would have qualified as eligible expenses with the ABLE account.  This money I spent on "eligible expenses" on my medical bills used was significant was not in the ABLE account at the time, but instead in a different savings/checking account. Is this amount of said medical expenses allowed to be counted towards qualified distributions as this money was counted in my federal income, is an approved expense and directly benefitted my disability?

[DavidS127]

Only money withdrawn from an ABLE account is considered a distribution, and it will be reported to you on Form 1099-QA.

If your ABLE distribution in a given year exceeds your qualified disability expenses in that year, the earnings portion of the distribution will be taxable.  The earnings portion will be reported on the Form 1099-QA. 

So, your ABLE distribution is not taken in the same year you pay the qualified disability expenses and exceeds your qualified expense or that year, part of the distribution will be taxable.  But, because your contribution to the ABLE account was recent, the earnings portion may be a relatively small percentage of the total distribution.

IRS Publication 907 has the rules for ABLE accounts.