If I forgot to self report 2020 distributions I took from my HSA to pay for medical expenses can I still file today?
- Yes, you can file your 2022 tax return. However, if you did have HSA distributions, please include them.
- After you check off that you have an HSA, almost the first screen is asking if you spent any money out of the HSA. Answer "yes", and enter your 1099-SA information in the subsequent screens.
- Also, if you know you've made an error on your 2020 tax return, you can file an amended return.
What happens if I fail to self report?
- The IRS will identify the distribution and deem it taxable income.
Does the IRS send me bill?
- They may prepare a bill, or just send you an inquiry. If they do send a bill, it will always be for the most tax possible.
What does this look like?
- It will be an official IRS form. Probably a CP (something). It will possibly have a contact number and a name in the top right side.
If I receive a bill from the IRS, can I share receipts for medical expenses to avoid paying bill?
- Yes, you will need documentation for the medical bills you paid, but do not do anything until you've contacted the IRS and they give you guidance.
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