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When used for qualified medical expenses, HSA distributions are not taxable but are required to be reported on Form 8889 Part II. If not present on Part II of Form 8889, the IRS will treat the distribution as taxable and potentially subject to an additional 10% tax.
When used for qualified medical expenses, HSA distributions are not taxable but are required to be reported on Form 8889 Part II. If not present on Part II of Form 8889, the IRS will treat the distribution as taxable and potentially subject to an additional 10% tax.
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