1099-QA Submission

[ccirugg828]

Going through Wages and Income there is no place for me to enter my 1099-QA from my ABLE Account....NOT 1099-Q Qualified Tuition Program.

How do I enter this form? 

[RayW7]

Go to Education rather than Wages and Credits.

You enter the form 1099-Q information in the federal section of Turbotax, then "Deductions and Credits", then "Education", then "ESA and Qualified Tuition Programs (Form 1099-Q)."

If you contribute money to a qualified tuition program, such as a 529 plan or a Coverdell ESA, you will likely receive an IRS Form 1099-Q in each year you make withdrawals to pay school expenses of the beneficiary. The 1099-Q reports the total of all withdrawals you make during the year; however, some of this amount may be taxable depending on how you spend the money.

Form 1099-Q comes from the administrator or bank that manages your 529 plan or Coverdell ESA. If you set up the account and make contributions to it, then you are the owner and are the recipient of the 1099-Q. If you create one of the accounts to put someone other than yourself through school, that student has no control over the funds and is not responsible for any of the tax consequences.

The 1099-Q provides three key pieces of information. Box 1 reports your annual distributions or withdrawals from the account. The second box reports the portion of the distribution that represents the income or earnings of your initial investment. Finally, box 3 reports your basis in the distribution. Essentially, this is the amount of your distribution that relates to original contributions you make to the account.

The form also includes information on the type of account you own and amounts, if any, that you transfer between two qualified tuition plans.

[ccirugg828]

This is NOT a Form 1099-Q it is a form 1099-QA.  1099-Q is for a Coverdell or 529 Account for EDUCATION.  1099-QA is for a Achieving A Better Life Experience (ABLE) Account for special needs individuals with a disability.  Where do I go to enter this form?

[KrisD15 · Accepted solution]

The 1099-QA is not reported on a tax return, but if the distribution was not used to care for the individual, you may need to report the taxable portion. 

Type   1099qa   into the search box

Click on the "jump to 1099qa"   link

OR

Click "Other Tax Situations"  

Click through the interview questions

Click "See all uncommon tax situations"

Scroll down to "Additional Tax Payments" and click Show more

Scroll down to Additional taxes and repayments and click Start

Click Yes on the next screen and continue through until you get to the screen to enter the amount of the distribution that was distributed for something other than the care of the person. 

"Distributions from an individual's ABLE account are tax-free to the extent the money is used to pay for qualified disability expenses. 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. The 10% penalty will not apply if the distribution is on or after the death of the account beneficiary."

Link to source