I spent all 900 bucks of my hsa money on non-qualifying medical expenses how do I pay this back? And where does the money go anlong with the xtra 10% I'll be taxed ?

bigtim78cwb · ‎May 31, 2019

When I pay this back where does the money go and not 10% tax

Opus 17 · ‎May 31, 2019

When you answer all the HSA questions, one of the questions is "did you use all the money for qualified expenses." Answer no. You will then be asked how much was qualified and how much was not qualified. Turbotax will add that information to form 8889 and the tax and penalty will be calculated and rolled in to your overall tax owed or refund amount.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

Opus 17 · ‎May 31, 2019

When you answer all the HSA questions, one of the questions is "did you use all the money for qualified expenses." Answer no. You will then be asked how much was qualified and how much was not qualified. Turbotax will add that information to form 8889 and the tax and penalty will be calculated and rolled in to your overall tax owed or refund amount.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

ghost · ‎May 31, 2019

There is no way to return this money if you knowingly spent the money on non-medical items.
If you paid a medical expense and then received an insurance adjustment that covered the expense, you could request your HSA bank to accept a return of distribution on that basis.
Besides the regular income tax, the penalty is actually 20% for non-medical usage.

I spent all 900 bucks of my hsa money on non-qualifying medical expenses how do I pay this back? And where does the money go anlong with the xtra 10% I'll be taxed ?