If you had a distribution from your account in 2015, you (if you received the funds) or the account beneficiary (if the distribution was to a school or the beneficiary) will receive in the mail from Virginia529 an IRS Form 1099-Q reflecting those distributions.
Normally, Virginia529 mails 1099-Qs by January 31; however, federal legislation enacted in late 2015 changed how 529 plans calculate earnings on distributions. To make the necessary system changes and provide accurate information, we anticipate issuing 1099-Q forms by March 1, 2016.
If all of your distributions from Virginia529 accounts during 2015 were used for qualified higher education expenses, this tax law change does not impact you; you need not report any distributions on your taxes.
However, if part or all of your distribution was not for a qualified higher education expense, you may owe taxes and penalties on earnings and will need the information supplied on the 1099-Q to make that calculation.
Consult your tax advisor to determine if distributions were qualified. You also may wish to review IRS Publication 970 which specifically addresses Section 529 college savings plans and the instructions for Form 1099-Q.