If my insurance co. provided a credit to me for the purchase of a fitness tracker as part of enrollment in an HSA wellness program, how do I report this credit value?

[natalieashan7]

1) this credit was never applied to my HSA account, but rather was a credit available to me that I utilized through the wellness program. I had to "claim" the credit at the time of my fitness tracker purchase, so I never had the funds hit any account. It was more like opting in to the credit if that makes any sense.

2) I've already asked about earnings and understand that insurance company payments from my wellness incentive program are to be added as a contribution. I apologize if this answer is the same for this question, but was concerned since the money a) never hit my HSA account and b) was not used for a qualified medical expense.

Those are my concerns and reasons for asking. If for some reason it is still considered an HSA contribution, again I apologize for my ignorance as this is the first year my employer has had this insurance contract.

[BMcCalpin]

Ah! I am glad you came back with a fuller description.

Yes, you would report ONLY money that was placed into your HSA account. If the transaction log at your HSA (you can probably see this online), doesn't show a contribution, then you don't report it (as an HSA contribution, anyway).

Your employer may be handling this as a limited purpose FSA, which would not affect your HSA. You might ask your employer how they are treating this.

Thanks for coming back and clarifying.

[natalieashan7]

Yes, I'm sorry, but the more I've looked at how they've structured our HSA and the wellness program that we can opt into in addition to the HSA, the more I've realized there are sort of some layers of questions as far as tax prep goes. I get matching employer contributions pulled from my pay (reported on W-2), insurance contributions based on wellness participation, and a credit from the insurance company for a tracker to join said wellness program. It's a nice set up, but this is my first year filing for it and I'm realizing it's just a little bit trickier. It's definitely an HSA, but the insurance providing extra incentives for being healthy is where I started to question how I was initially reporting this.

Thanks again for all of your help in answering my questions.

[BMcCalpin]

Stay well! 😉