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jbruhn12
New Member

Can anyone help me figure out if I have hsa

 
3 Replies
RobertG
Expert Alumni

Can anyone help me figure out if I have hsa

Can you be more specific?

 

Did you have an HSA through your work?

 

A health savings account (HSA) is a tax-free, interest-bearing account used to pay qualified medical expenses.

 

For 2019, the maximum contribution to an HSA is $3,500 for an individual plan or $7,000 for a family plan. This is the combined contribution from both you and your employer.

 

If you're 55 or older, you're allowed to contribute up to $1,000 more for a maximum of $4,500 (individual) or $8,000 (family).

 

There are penalties if you have an excess contribution to your HSA, unless withdrawn before filing your tax return. Also, additional tax would be owed if your distribution was used for something other than medical expenses.

 

To open an HSA, you must be enrolled in a high deductible health plan (HDHP) and you can’t be enrolled in Medicare or another health insurance policy (with a few exceptions). You also can’t be a dependent on somebody else's return.

 

With skyrocketing health care premiums, an increasing number of employers are offering HSAs along with HDHPs to their employees. Many people with an HSA have it through their employer and many employers also contribute to their employees' HSAs as an added incentive.

 

When you open an HSA, you'll start dealing with tax forms you may not be familiar with:

  • Form 5498-SA, which doesn't need to be filed
  • Form 1099-SA, if you used funds in your HSA to pay for medical expenses
  • Form 8889, which reports HSA information on your tax return

 

 

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BobBredenb
New Member

Can anyone help me figure out if I have hsa

My son quit his job before the end of 2019. he has a balance in an HSA account but no longer makes contributions and is no longer in an HDCP.  He made no contributions to HSA in 2020.

 He moved in Jan 2020 to live with us in Nevada. Due to COVID he did not get a job and he got on Medicaid from May - Dec 2020.

 How do I report this in T T?

 Also can he keep using the balance of funds from HSA accounts to buy medical supplies?

 Thx. Bob B

BillM223
Expert Alumni

Can anyone help me figure out if I have hsa

Yes, you (he) can continue to spend money for qualified medical expenses from the HSA so long as there are funds in it.

 

He should have gotten a 1099-SA showing the distributions (payments) for 2020 (if any).

 

To enter this, do a Search (upper right) for hsa and click on the Jump-to link (Mac users must find HSA in the Topics List).

 

He must check off that he has an HSA. Almost the first thing TurboTax will ask him is "did he spend any money in 2020?" Answer YES and enter the 1099-SA data.

 

Later in the HSA interview, he will indicate that he was not covered by an HDHP for any month in 2020. Since he made no contributions in 2020, this will be fine.

 

TurboTax will complete form 8889, which is required if the HSA owner either made contributions or took distributions.

 

To repeat, you can spend money from the HSA even if you are no longer eligible to contribute money to the HSA.

 

@BobBredenb

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