HSA amend and reimbursemen from 2 years ago (2017)

[Great_tangelo]

Greeting,

My tax preparer did not do my HSA in 2017 (even though I gave him all docs that he needs. I just found out when I prepare my 2018 tax). Now I need to amend my 2017 tax for HSA, but thing is little complicate. Below are the list of what i want to do:

    - I want to amend my HSA in 2017.

    - However, I also want to reimburse from 2017 HSA (I use other credit card to pay for my medical expenses).

my question is: Can I still amend my 2017 tax (before get audited), and asking to reimburse? Or I have to do my reimbursement for 2019 tax (next year)? if so, is it ok for 2017 reciepts?

Thanks

[BMcCalpin · Accepted solution]

Did you have the HSA in 2017? If so, then you are allowed to ask your HSA custodian at any time for a reimbursement of any qualified medical expenses paid after that HSA was created. It does not matter if you reported the HSA on your 2017 return or no - the HSA custodian has filed reports with the IRS showing that the HSA existed.

In fact, it is OK to ask for the reimbursement even years later after the expense, so long as the HSA existed when the original expense was incurred.

Yes, do amend your 2017 return to cause the form 8889 to be added to your 2017 return. It may make no difference to your tax due, but it will square up your return with the copies of the forms that the IRS has received from your employer and your HSA custodian, which avoids letters of curiosity from the IRS. 

[Great_tangelo]

Thanks TurboTaxBill Mc for answering the question.
- yes, my HSA starting from 2017.
- my question is that if I reimburse my 2017 medical spending. this amount will be report in 2019 HSA statement. My question is that which tax year should i report to? to my 2019 (with 2017 reciepts?) or I have to amend my 2017 tax again (assume that I will amend my 2017 tax now). - Thanks

[BMcCalpin]

This is a funny situation that the IRS doesn't fully address. When you receive a 1099-SA for this distribution, just report it in the year to which the form belongs (not the original expense). So if you do the reimbursement now, you should get in early 2020 a 1099-SA reporting it, and you will enter this on your 2019 tax return (which you will be doing in early 2020).

[Great_tangelo]

Thanks TurboTaxBillMc! that is a great help.

another questions:
- if i do amend my tax. I assume that i have to do form 1040X (even thought, I only need to amend my HSA) is it correct? Or I just make copy of my 2017 tax and attach 1099-sa and 8889 form and send them to IRS?
- for the State tax return, do I need to amend my state tax return because I only forgot to include my HSA distribution?

Thanks