topic Delete Please in Deductions & credits

Delete Please

flyrsphl27 — Tue, 03 Nov 2020 11:40:25 GMT

Re: I have been maxing out my HSA since 2013 even though my wife having a FSA. Nothing has happened yet, should we just opt out of her FSA for 2021 and ignore the past?

Critter-3 — Mon, 02 Nov 2020 01:00:57 GMT

That would not be the correct path to take however you can play IRS audit roulette if you want to.

Re: I have been maxing out my HSA since 2013 even though my wife having a FSA. Nothing has happened yet, should we just opt out of her FSA for 2021 and ignore the past?

Anonymous — Mon, 02 Nov 2020 05:34:55 GMT

the thing in the tax laws is if that you are due a refund there's a time limit for filing to get it. the opposite isn't true, since you owe the IRS, it can come after you at any time. meanwhile, penalties and interest would continue to accumulate. consult a tax pro. they can advise you as to what you are facing and can even inform you if they can write a letter to send with your returns to get some or all of the penalties abated (interest can't be abated). many times the IRS will abate first time penalties. they can not force you to file amended returns. you do need to take steps so this issue stops recurring. The longer it goes on the more likely the IRS is to catch it. they have taken many steps in other areas to catch misreporting.

Re: I have been maxing out my HSA since 2013 even though my wife having a FSA. Nothing has happened yet, should we just opt out of her FSA for 2021 and ignore the past?

Opus 17 — Mon, 02 Nov 2020 21:58:42 GMT

This has already been discussed at the other conversation you started.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-the-last-5-years-i-have-maxed-out-my-hsa-and-my-wife-has-maxed-out-her-fsa-not-knowing-we-could/01/1738704#M164841

We can't give legal advice and we can't tell you whether the statute of limitations can be used to wipe out the penalty. Basically, your penalty is based on the amount of disallowed contributions, or the amount remaining in the account at the end of the year. If you only contribute what you need and zero the account every year, then you won't ever pay a penalty but you will never be able to use the account to accumulate wealth for retirement or future medical costs. We can't tell you how long the IRS can come after you for the accumulated penalty if you start building wealth again. You need professional advice.

Re: Delete Please

elainestratos-ya — Tue, 29 Dec 2020 15:29:43 GMT

Incorrect information was input please delete so i can start over again

Re: Delete Please

DoninGA — Tue, 29 Dec 2020 15:32:36 GMT

@elainestratos-ya wrote:

Incorrect information was input please delete so i can start over again

Only you can delete the tax data in an online tax return.

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over. Click on Tax Tools on the left side of the program screen while working on the 2020 online tax return. Click on Clear & Start Over.