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Had HSA at beginning of year, funds deposited into bank account at its close. How do I declare these funds?

 
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Had HSA at beginning of year, funds deposited into bank account at its close. How do I declare these funds?

Are you saying that you closed your HSA and took all the money out and put it into your personal checking account?

In this case, you should have received a 1099-SA which would report on this "distribution" (moving to money to your checking account).

In the HSA interview, after entering the 1099-SA information, you would also indicate that none of the distribution was spent on qualified medical expenses. See the screen entitled "Did you spend your HSA money on medical expenses only?"

This will result in a penalty of 20% of the distribution as well as having to pay income tax on the amount.

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Had HSA at beginning of year, funds deposited into bank account at its close. How do I declare these funds?

Are you saying that you closed your HSA and took all the money out and put it into your personal checking account?

In this case, you should have received a 1099-SA which would report on this "distribution" (moving to money to your checking account).

In the HSA interview, after entering the 1099-SA information, you would also indicate that none of the distribution was spent on qualified medical expenses. See the screen entitled "Did you spend your HSA money on medical expenses only?"

This will result in a penalty of 20% of the distribution as well as having to pay income tax on the amount.

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