Where do I enter a 1099-QA distribution form?

Tax benefits of ABLE accounts.

Contributions to an ABLE account are not tax-deductible on the federal return, but all investment earnings remain untaxed as long as money taken from the account is used for "qualified disability expenses."  Since the earnings are not taxed unless there is an excess distribution, you will not need to report the Form 1099-QA but you should keep it with your tax documents. 

Such expenses include, among other things:

• Medical treatment
• Education, tutoring and job training
• Special-needs transportation
• Assistive technology
• Housing
• Legal and administrative fees

As with education 529 plans, taxes apply if money is withdrawn from an ABLE account for something other than qualifying expenses. Usually, the beneficiary will have to:

• Pay income taxes on the portion of the withdrawal that consists of investment earnings, as opposed to contributions
• In addition, a 10% tax penalty will apply
  
  If you do need to report distribution from the account that was not used for qualified expenses, you can use the Search box with the magnifying glass and then click on the blue Jump to link.