Ok ... the answer I gave earlier was to a different question.
Scenario A- Hypothetically, if I have money deducted from my payroll check Pre Taxed and deposited into my HSA (the most common way) Lets say we use the Max contribution allowed of $3650 for this scenario. You got the tax benefit when you put the money in the HSA thru the payroll system because you did not pay taxes on this money.
Scenario B-What I am currently dealing with. I had $3650 in total medical bills I paid from my payroll that has already been taxed. Half ($1325) I used prior to making my HSA account, the other $1325 I moved from my taxed funds from checking to my HSA and used that. OK ... so you paid $3650 in bills ... half using the funds in an exhisting account HSA accoount and half with out of pocket money so that 1/2 can be used on the Sch A IF you can itemize deductions but since the expenses need to be more than 7.5% of your income to be deductible you may not be able to use the deduction.
For the payment from the HSA you should get a form 1099-SA that must be entered on the return ... see my prior instructions.
