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Level 1

Heath savings account

I was in an auto accident and paid medical bills with my Health savings account. I was later Reimbursed the funds but never put them back into my account. Will turbo tax offer a form to fill out so I can claim these funds?

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Level 1

Heath savings account

You have until the tax filing deadline (April 18, 2017) to repay amounts that you were reimbursed for by your insurance company. You would repay by depositing into your HSA account. This repayment is considered an adjustment to your HSA, not a contribution. 

If you do not repay your HSA account, the amounts withdrawn that were reimbursed will be considered a non-medical distribution and will be subject to a 20% penalty tax. In Turbo Tax you would indicate no that you did not use the distribution for medical expenses.  See screenshot below.  The Turbo Tax program will calculate the penalty and complete the correct forms.

To answer HSA questions, go to the LESS COMMON INCOME section and select Start next to 1099-SA, HAS, MSA.


2 Replies
Highlighted
Level 1

Heath savings account

You have until the tax filing deadline (April 18, 2017) to repay amounts that you were reimbursed for by your insurance company. You would repay by depositing into your HSA account. This repayment is considered an adjustment to your HSA, not a contribution. 

If you do not repay your HSA account, the amounts withdrawn that were reimbursed will be considered a non-medical distribution and will be subject to a 20% penalty tax. In Turbo Tax you would indicate no that you did not use the distribution for medical expenses.  See screenshot below.  The Turbo Tax program will calculate the penalty and complete the correct forms.

To answer HSA questions, go to the LESS COMMON INCOME section and select Start next to 1099-SA, HAS, MSA.


Level 20

Heath savings account

You must contact the HSA custodian about making a "return of mistaken distribution" to your HSA.  The HSA custodian is not required to accept a return of mistaken distribution, but most do, and will likely have a special form for doing this.