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I have a 2017 1099-SA for $132. I had an HSA in 2016. I was using up my leftover HSA funds in 2017. Do I need to claim this on my 2017 taxes or can I safely ignore it?
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I have a 2017 1099-SA for $132. I had an HSA in 2016. I was using up my leftover HSA funds in 2017. Do I need to claim this on my 2017 taxes or can I safely ignore it?
You are allowed to use money from an HSA for qualified medical expenses even if you are not eligible to make new contributions. If you don't report the withdrawal and check the box that says you used it for qualified expenses, the IRS will assume that it was non-qualified and will send you a bill for additional tax plus a penalty.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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I have a 2017 1099-SA for $132. I had an HSA in 2016. I was using up my leftover HSA funds in 2017. Do I need to claim this on my 2017 taxes or can I safely ignore it?
You are allowed to use money from an HSA for qualified medical expenses even if you are not eligible to make new contributions. If you don't report the withdrawal and check the box that says you used it for qualified expenses, the IRS will assume that it was non-qualified and will send you a bill for additional tax plus a penalty.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*