Reporting when you use both FSA and HSA?

[Sandyjb555]

We previously just had an HSA, and I knew how to report that. Now we had to switch to a 80/20 (not high deductible) plan which has an FSA. We use FSA up then use our HSA account that still has remaining money in it.  I want to make sure I am still prompted to report the HSA because we are no longer on a high-deductible insurance plan, and I thought that was part of the prompts to get you to the HSA reporting.

Also

1 to confirm, you cannot report FSA correct, just HSA?

2.If no FSA reporting does that not count as medical expenses you paid during the calendar year as well? Not sure what medical expenses we can claim now.

[SantinoD · Accepted solution]

You should receive form 1099-SA to report the money withdrawn from your HSA account. As long as you paid qualified medical expenses with the money, it is not taxable. The rule that says you must be on a High deductible plan only applies to money that is contributed (money put into your HSA) to the HSA. There are penalties if you have an excess contribution to your HSA.

The screen where you enter your 1099-SA is where it will prompt you to answer questions about the High deductible plan (HDP). You can answer "No" to "Were you covered by a High Deductible Health Plan (HDHP) in 2022?" if you weren't covered for the whole year. 

To get to the screen to enter your 1099-SA, follow these steps:

1. Open or continue your return in TurboTax
2. Select Search and enter 1099-SA
3. Select Jump to 1099-sa
4. Answer the questions and continue through the screens

No need to report FSA and no, you can't deduct medical expenses that were paid with a flexible spending account (FSA). This is a pre-tax account, and you can't deduct medical expenses that were paid with a pre-tax account. To learn more about FSA, go here: Flexible Spending Arrangement (FSA)

To learn more about what medical expenses you can deduct, Go Here