1099-SA for FSA?

[Sarah220]

My husband has a FSA through his employer but we were sent a 1099-SA.  Is this normal or an error? I'm not sure if I need to enter this on the return or not. He doesn't have a HSA.

[BillM223]

1. Do NOT enter this 1099-SA into your TurboTax, you should not have received this.

2. Who sent it to you? Your employer? You have no (as in ZERO) reporting requirements on your FSA on your tax return. Please tell your HR people that they should not be doing this.

3. Was it sent by some bank or financial institution? I am concerned that THEY think that you have an HSA, which is something you need to clear up immediately. Why? Because the person(s) who sent you the 1099-SA also possibly sent a copy to the IRS (this would be required if you had an HSA and made payments out of it).

In short, you should not have gotten this and you need to get to the bottom of this mystery.

[Sarah220]

Thank you, I looked over the statement he gets every month from HealthEquity and it states HSA BUT when he pulls up his benefits account it is listed as a FSA. I believe the company sent the 1099-SA and not his employer. I was concerned because he doesn't qualify for a HSA. @BillM223 

[BillM223]

HealthEquity is a large administrator of HSAs and FSAs.

I think that this is an "oops" on their part. You should contact HealthEquity and point out that they have incorrectly sent a 1099-SA to an FSA customer. Hopefully this will start some self-reflection on their part. For example, did they send a copy of this 1099-SA to the IRS? That would have been a mistake that they need to correct.

For your part, keep every record you have about this in your tax files, in case the IRS wonders why someone who has an "HSA" didn't file form 8889 with their tax return. If that happens, just give the IRS a nice reply that Health Equity mistakenly sent some FSA customers (you, at least) HSA-related forms. Hopefully, this quickly gets the IRS's attention off of you and onto the big company.