Hello everyone!
I’m trying to figure out how to calculate capital gains on my HSA investments, which I plan to sell soon. Since I live in California, I know HSA investment gains are taxable at the state level (they’re not taxed federally), and I want to make sure I do this properly.
Here’s the background:
- I regularly invested whenever my HSA balance exceeded $1,000 but never actually sold those investments for medical expenses. Instead, I kept the minimum $1,000 in the regular HSA account or paid expenses out of pocket.
- My investment balance is now about $40,000, and it has grown by roughly 36% since I opened the account in July 2021.
- Each year, I receive Forms 1099-SA and 5498-SA, which show my distributions, contributions, and the account’s Fair Market Value. This will be my first time figuring out the capital gains piece if I decide to liquidate.
- I’m no longer employed at the company that offered this HSA, so there won’t be any new contributions.
- The platform (VIA Benefits) doesn’t provide capital gains details like a typical brokerage, but I did download a CSV with my transaction history. Now I need to determine my gains on my own.
My questions:
- Can the “File Your Own Taxes” option in TurboTax handle these calculations if I import or manually enter the data from my CSV, or is there a built-in tool to help with HSA capital gains in California?
- If it’s too complex, would using TurboTax’s “Let an Expert File Your Taxes” option be a better route so they can do the calculations for me?
I appreciate any guidance or resources you can share. Thanks in advance!
