Health Savings Account Tax question?
Jman asked:
I am doing my taxes and have become stuck at this point:
I am doing my taxes and have become stuck at this point:
Enter the unreimbursed qualified medical expenses that relate to this 1099-sa
What are the “unreimbursed qualified medical expenses?”
Are they the things that I have paid for out of my own pocket and not used my HSA money for?
Kyle Jasinski
Hello, Jman! You asked two questions, and the following should answer them both. This is a bit long, but hang with me:
If you read Part II of Form 8889 carefully (this is the section where it asks for “unreimbursed qualified medical expenses”), you’ll see that the form is calculating how much (if any) of the money you took out of your HSA should be taxable.
Line 12a asks for the TOTAL amount of money you withdrew from your HSA’s during 2006. If you turned around and put some or all of it into another HSA, that amount is subtracted out (Lines 12b-c) and is not taxable. If any distributions were not rolled over into another HSA, Line 13 then asks for your “unreimbursed qualified medical expenses.” Page 5 of the instructions says this regarding Line 13:
“Only include on line 13 distributions from your HSA that were used to pay or reimburse you for qualified medical expenses (see page 1) you incurred after the HSA was established.”
So basically, Line 13 is asking, “You took $xxxx out of your HSA; how much of that was used on medical expenses for which your health insurance didn’t reimburse you?” Once you enter that amount (which is also non-taxable), anything leftover is your taxable HSA distributions (Line 14).
I hope that wasn’t too confusing; add to your question if you need clarification. Good luck!
Yes .If you paid for and did not receive the HSA money