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Level 2
August 21, 2020
Question

CP2000 received for 2018

  • August 21, 2020
  • 2 replies
  • 19 views

I received a CP2000 for my 2018 return.  one of the items listed is for HSA disbursement.  There is a total payed out from my HSA for the year, however it was all for medical expenses.  Are these payments from HSA taxable?   

    2 replies

    Level 15
    August 22, 2020

    You should have filed Form 8889 in which you would have reported that your HSA withdrawals were for qualified medical expenses in which case they would not be taxed. 

    Level 15
    September 26, 2020

    No, HSA distributions for medical expenses are not taxable.

     

    The IRS received a copy of form 1099-SA which reported the distributions from your HSA (you should have gotten a copy, too). If you would have entered this form in TurboTax, it would have generated a form 8889, which, as Bsch4477 notes, is required to show that your distributions were all for medical expenses.

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