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Level 2
posted Aug 21, 2020 4:40:35 PM

CP2000 received for 2018

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?   

0 2 350
2 Replies
Level 15
Aug 22, 2020 11:29:01 AM

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 13
Sep 25, 2020 7:47:52 PM

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.