HSA

Forum|Forum|1 year ago
September 25, 2024
2 replies
4 views

If I received money out of my HSA to pay for medical expenses, why do I have to pay taxes on that?

SusanR2

Level 4

If your HSA form indicates the distribution was not used for medical expenses, you will pay tax on the amount not used for medical expenses. Here is an article discussing HSA type distributions for your reference:

https://turbotax.intuit.com/tax-tips/health-care/what-is-irs-form-1099-sa-distributions-from-an-hsa-archer-msa-or-medicare-advantage-msa/L2IwVaB9X

Cindy4 12

Employee Tax Expert

Distributions from HSAs are not taxable as long as they are used to pay for qualified medical expenses.

They do need to be reported on your tax return, though. You should receive a form 1099-SA that you will enter here in TurboTax.

This will reconcile the information reported to the IRS as a distribution with your tax return where you confirm it was used to pay for the qualified medical expenses.

Hope this helps!

Cindy

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