Health Savings Account-Health Savings Account Info

Pr1nce5s ? asked:


I had to spend my savings a few months ago on medical bills …let me add to the rant that I am not diagnosed and still in pain because the regardless of all the tests and everythihg they put me through, my doctor didn’t know what was wrong, so I feel like I was ripped off. All the ***** did was lie on her back against the wall, like way chill and with my cash in her pocket say: “I don’t know what’s wrong. If it gets worse just call 911″. Now I live in pain and discomfort while my poor bank account suffers from nostalgia missing the 4-figure greens that it once gave shelter to.

So anyway…. I’ve been working since I was 16 and I’m 22 now. In 6 years I’ve never received a penny in medical assistance. Anyone mind explaining why they still take that money anyways?

OBAMA!!! Help this sister out. Tell them to give me back my Medicare money or whatever they take from my taxes. I’m sure I could buy some cute outfits with the medicaid money I’ve had withheld through the years and make sure I look drop d.e.a.d. gorgeous whenever “If it gets worse” happens.
Medicaid, Medicare, you get the point. One of those medic stuff is always taken out of my checks.
And ***** that! I don’t wanna wait until I’m 65. Hey government, why don’t you help me pay another doctor by giving me my Medicair/are money back so I can make it to 65?

Ladawn Mallalieu

Whoa_Phat asked:


I have a High Deductible Health Plan and a Health Savings Account. I just realized that KEY Bank charges a 25$ account set up fee and a $2.50 account maintenence change, If all my contributions are pre-tax and pre-social security tax. Do the fees count as ordinary income or an unqualified withdrawl?
I started this plan in April. My employer adds $24 per pay (weekly), I add $44 per pay starting August. With the health plan, nothing is covered until my wife and I reach $3000. She needs to go to the Dr. often so there has been an average balance of $20 after I pay for RX and office visits. Office visits are running average of $90.00.
My Rx are about $125/mo and hers are $100/mo.
My part of the Ins Premium is $25/per pay.

So far, since April I earned $0.12 in interest and paid $27.50 in fees
We are also have about $500 outstanding balances due, and I have stopped taking my Cholesterol Meds (Niaspan) due to the costs.

Isaias Crankshaw

NoviceChap asked:


I have a savings account and I earn less than 25$ a year. Should I have to report this to the IRS? I am waiting on my tax forms from my bank and this is taking a lot of time. I was wondering if excluding this small account from my filings would be legal or not? Thanks in advance for your answer.

Chuck Norris

Don H asked:


I’m self employed and want to open a savings account for my 1 year old daughter. Money from family and friends she has received for gifts. I have to be on the account as well because she is a minor. Will I have to pay taxes on her money if my name is on the account?

Lemuel Sangha

cdcsctennis asked:


I have had a high deductible health plan since Jan 1, 2010 and will have one through the remainder of 2010 and probably into 2011 as well. However, I have not taken advantage of a health savings account. I have had some medical expenses (like doc visit, Rx’s, chiropractor, lab fees, dental work, etc) since Jan 1 and will have some additional medical expenses (flu shot, dental work, chiropractor, etc) from now through the end of 2010 and in January 2011. Can I setup a HSA and fund it (am single) and then reimburse myself for the medical expenses I have already paid out of pocket (after tax)? I have receipts and documentation of the medical expense and my payment.

Osvaldo Mondor

retrovertigo asked:


Subject: 2011 is the largest TAX increase in history

———————————————————————————————————————————

2011 TAX HIKES Read it and weep! Notice they thought they could put it in after this November election: Past this on to likely voters. Small business are smart people, they are not hiring or expanding because they see lower or no profits, increased cost and a worsening economy.

In just six months, the largest tax hikes in the history of America will take effect.
They will hit families and small businesses in three great waves on January 1, 2011:

Biggest surprise to working Americans:
Now your insurance is INCOME on your W2′s……
One of the surprises we’ll find come next year, is what follows – - a little “surprise” that 99% of us had no idea was included in the “new and improved” healthcare legislation
Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company.
You will now be required to pay taxes on a large sum of money that you have never seen.
Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your Tax debt. That’s what you’ll pay next year. For many, it also puts you into a new higher bracket so it’s even worse.
Here is an explanation of the rest.

First Wave:
Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These tax cuts are all scheduled to expire on January 1, 2011:

Personal income tax rates will rise.
The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed).
Itemized deductions and personal exemptions will be phased out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:
- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family.
The child tax credit will be cut in half from $1000 to $500 per child.
The standard deduction will no longer be doubled for married couples relative to the single level.
The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax.
For those dying on or after January 1 2011, there is a 55 percent top death tax rate.
Higher tax rates on RETIREES, Savers and Investors.
The capital gains tax on investment income will rise from 15 percent this year to 20 percent in 2011.
The dividends tax will rise from 15 percent this year to 39.6 percent in 2011.
These rates will rise another 3.8 percent in 2013.

Second Wave:
Obamacare
There are over twenty new or higher taxes in Obamacare.
Several will first go into effect on January 1, 2011. They include:
The “Medicine Cabinet Tax”
Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The “Special Needs Kids Tax”
This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States and many of them use FSAs to pay for special needs education. Under tax rules, FSA dollars cannot be used to pay for this type of special needs education.
The HSA Withdrawal Tax Hike.
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent.
Third Wave:
The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011,they’ll be in for a nasty surprise—many AMT tax relief provisions will have expired.
The major items include:

The AMT will now apply to over 28 million families, up from 4 million last year.
These families will have to pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or depreciate”) equipment purchases up to $250,000.
This will be cut all the way down to $25,000. Larger businesses can expense half of the
Darrell: I am not preaching to you. I am not saying something is fact. I am not posting this to inform anybody about anything.This information was forwarded to me and I posted it in hopes that the Yahoo! community will help explain it to me. I’m not a tax expert. I don’t understand these taxes. I am hoping someone else does. That’s all. I come here for answers and opinions. Not to get involved in partisan bickering.

Jamey Fergurson

Kmg asked:


If I have already filed my tax return and did not file Form 8889 for having a Health Savings Account do I need to file an amended return if it will have no impact on my tax liability?

Thanks in advance!

Leonel Ullrich

karenno_1 asked:


I received a letter from my boss, saying “the company has contributed … into your Heath Savings Account in 2010. Your 2010 tax returns should take this contribution into account. Please report this amount while preparing your tax returns. Also please note that the W2 prepared by ADP did not reflect this contribution.”

Unfortunately I already filed my tax return without the HSA contribution. Does that mean the employer’s contribution should go to my taxable income, or my tax deduction? I thought Line 25 in 1040 “Health savings account deduction. Attach Form 8889″ is for my personal contribution only.

Thanks a lot!
BTW I didn’t contribute anything myself last year. So I don’t need to to anything?

Shad Kilker

Sharon P asked:


There is nothing on my w-2 regarding my Health Savings Account. (HSA) I received a Form5498-SA from the bank that holds my HSA account. Box 2 says Total Contributions made for 2010 2,700.00
I am assuming this form is sent the IRS by the bank. I did not contribute all of this. Some was contributed by my employer yet the amount they contributed is not on the 5498-SA form as a separate amount from the total .There is nothing on my w-2 about my HSA account at all.. It doesn’t make sense to me that I can deduct what my employer contributed but I also read to enter box 2 on my tax form as a deduction. I would appreciate some help with this. Thanks
The amount in Box 1 of my W-2 is my wages for the year. Sorry but I am confused at what you are trying to tell me. Thanks .
Tax Lady – I can use my common sense and records however some companies report contributions from 1/1 through 1/31 of 2010 but some consider contributions all the way to April 2011 as 2010 contributions. If they are doing that I can’t even file taxes until April so I would have the correct total.
It would be nice if my w-2 had the proper information also.
My deductions came from paycheck however my employer contributes money also. I just noticed that their January 2011 contributions states it is for 2010. Good thing I looked as I was ending everything as of 12/31/2010

Aisha Clontz

George H asked:


Opened HDHP with an HSA on Oct. 1 2010. Simultaneously terminated the HMO that we had for the past several years (much higher premium.) The HDHP with HSA is a family plan. I’m self employed. My wife is self employed. Neither is covered by any other health plan. We’re 42 and 39. Have three small kids. I think the answer is $6150.00.

Richie Feauto