I have an FSA this year, but also using funds from Older HSA account, what to report?

[Sandyjb555]

 We are currently enrolled in an FSA account. We also have an older HSA account with money still in it, so AFTER our FSA account is spent in full for the year, we go back and pay the rest of year's medical bills with our older HSA account. We do NOT contribute anything to the HSA anymore, as we can't while we have an FSA.

Questions on Reporting:

1. With the FSA.    do we report contributions AND distributions? if so what FORM to look for

2. With the HSA.    do we report just the distributions since there are NO contributions? if so what form to look for

3. It says you don't report medical expenses unless you are Itemizing.

Our medical expenses are nowhere close to the percentage of income to matter, and we never itemize because we do better taking standard deductions.       So the question: IF we do have to report the distributions for both the FSA and HSA, is that not the same as reporting your medical expenses? Again we don't itemize our deductions. Hope someone can explain this in a way I can understand. Thank you

[Mike9241]

Questions on Reporting:

1. With the FSA.    do we report contributions AND distributions? if so what FORM to look for

there is no reporting for an FSA

2. With the HSA.    do we report just the distributions since there are NO contributions? if so what form to look for

yes. you'll get a 1099-SA towards the end of January or early February. The IRS also gets a copy. Entering this data should complete form 8889 for the taxpayer. It is on the 8889 that the distribution would be shown as being used for qualified medical expenses which will avoid penalties for disqualified distributions.

[Critter-3]

FSA is all done thru payroll ... nothing is reported on the tax return.

The HSA is handled in 3 parts in the TT program  ...you only have the third part to deal with:

https://ttlc.intuit.com/community/health-care/help/why-is-my-hsa-distribution-taxable/00/26609

And simply ignore the medical expenses section ... what you pay using FSA or HSA funds are not entered anywhere on the return.