The Achieving a Better Life Experience (ABLE) Act of 2014 allows states to create tax-advantaged savings programs for eligible people with disabilities. Funds from these 529A ABLE accounts can help designated beneficiaries pay for qualified disability expenses. Distributions are tax-free if used for qualified disability expenses. For a list of qualifying expenses, please see the ABLE Account National Recourse Center.
What if I used the distribution for non-qualified expenses?
Distributions used for non qualified expenses must be reported on the Schedule I, Other Income. To do so within the program, please follow the steps below.
- Federal
- Income
- Less Common Income
- Other Income
- Enter the taxable distribution and choose "Taxable distributions from an ABLE account (Form 1099-QA, Box 2)" from the dropdown listing.