If I reimburse myself for med expenses w/ my HSA after paying for them w/ another credit or debit card, will that HSA reimbursement count as income for the taxable year?

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1 Best answer

Level 13

Jun 5, 2019 4:06:19 PM

No, it won't count as income.

The way it works is this:

You put pre-tax money into the HSA.
Later - even years later - you ask the HSA plan administrator for a distribution to reimburse yourself for the out-of-pocket qualified medical expenses.
The HSA plan administrator will send you a 1099-SA for that distribution for the year in which the distribution occurred
You report this distribution in the year the distribution is paid, not when the expenses were incurred.
You don't report this as income (because it's not)

Note that there is no deadline by when you must reimburse yourself, just as long as you were in the HSA when the original expenses were incurred.

Level 13

Jun 5, 2019 4:06:19 PM

No, it won't count as income.

The way it works is this:

You put pre-tax money into the HSA.
Later - even years later - you ask the HSA plan administrator for a distribution to reimburse yourself for the out-of-pocket qualified medical expenses.
The HSA plan administrator will send you a 1099-SA for that distribution for the year in which the distribution occurred
You report this distribution in the year the distribution is paid, not when the expenses were incurred.
You don't report this as income (because it's not)

Note that there is no deadline by when you must reimburse yourself, just as long as you were in the HSA when the original expenses were incurred.