For HSA, TT asks , "Did NAME inherit this HSA? It's not common, but we have to check. If you inherited this HSA from a spouse, answer No."? Isn't this an error?

Shouldn't the response be "Yes" if you inherited the HSA and "No" if you did not? Or it should be rewritten to say, "If you did not inherit this HSA from a spouse, answer No."

1676

Level 15

Feb 2, 2023 8:09:09 AM

It’s saying answer no if you didn’t inherit the HSA and also answer no if you inherited the HSA but you inherited it from your spouse.

Expert Alumni

Feb 9, 2023 5:58:36 AM

No, this is not an error. HSAs inherited from a deceased spouse are treated differently than ones inherited from others.

Basically HSAs inherited from a spouse become your own HSA and there is no tax impact if it's used to pay for your medical expenses.

HSAs you inherit from someone other than a spouse are included in your income. Medical expenses you paid for the decedent within one year after the date of death are not included in your income.

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For HSA, TT asks , "Did NAME inherit this HSA? It's not common, but we have to check. If you inherited this HSA from a spouse, answer No."? Isn't this an error?