I reimbursed with qualified medical expenses from HSA(not withdraw). IWhat shall I pay attention to in answering Deluxe questions to avoid paying tax for expenses?

[Mike9241]

your question is not clear please clarify. 

[Critter-3]

The HSA will issue a 1099-SA which will reflect ALL distributions of any kind ... distributions are :

1) all payments made directly to the service provider by use of the issued debit card or checks (if you have those available on that account)

2) all reimbursements to yourself for qualified medical expenses you paid out of pocket

[vera-chenlu]

Thank you. Is including 1099-SA sufficient for IRS to know the reimbursement as a portion of distribution is not a withdraw and won't tax me for it? 

[Critter-3]

On the form 8889 line 14A   indicates the total funds  distributed FOR ANY REASON  and on line  15  the amount of qualifying medical expenses that were paid FROM ANY SOURCE.    If these are the same amounts they automatically negate each other so NONE of it is a taxable "withdrawl".

[Opus 17]

---

@vera-chenlu wrote:

Thank you. Is including 1099-SA sufficient for IRS to know the reimbursement as a portion of distribution is not a withdraw and won't tax me for it? 

---

Any withdrawal from the HSA is a distribution, whether you withdraw cash, use a debit card, or the HSA bank pays the provider.  You will get one 1099-SA form showing the total of all withdrawals.

When you enter the 1099-SA form, you will be asked "did you use the entire amount for qualified medical expenses?"  If you say yes, the distribution will be tax free.  In most cases the IRS will accept your written certification, but keep your records for at least 3 years in case of audit.  If you fail to certify the expenses were qualified, the IRS will assume they are not, and turbotax will assess tax and a penalty to be in compliance with IRS regulations. 

[vera-chenlu]

Thank you!