Do I have to report withdrawals from my health savings account if my employer made the contribution?
by admin ~ October 18th, 2006 . Filed under: Investing .
Bern asked:
My employer opened a health savings account in 2007. I used those funds for medical bills in 2007. Do I have to report those withdrawals and if so, are they taxable?
Shanell Laface
My employer opened a health savings account in 2007. I used those funds for medical bills in 2007. Do I have to report those withdrawals and if so, are they taxable?
Shanell Laface
October 21st, 2006 at 4:28 pm
It appears that you are responsible for keeping your receipts in case you are audited and you only take your HSA deduction on your tax return if you contribute. If your employer contributes, the contribution is not taxable, so it appears that you need to put nothing about it on your tax return. I would keep all receipts in case of an audit.
From HSA FAQ:
“If my employer contributes to my HSA, does that also provide me any tax benefit?
If your employer makes a contribution to your HSA, the contribution is not taxable to you the employee (excluded from income).”