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New Member
posted Apr 11, 2025 5:14:03 PM

If there was a fraudulent charge on my HSA account, do I now have to pay taxes on that amount?

There was a large fraudulent charge on my HSA account, more than was contributed during that year. Will I now be responsible for the taxes on that amount as if I used it for a non-medical expense? And if so can I "repay" the amount into the account?

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Expert Alumni
Apr 11, 2025 5:42:57 PM

Please see TurboTax Expert BillM223's answer to a similar situation:

 

"The form 8889 doesn't allow for your situation (one of many situations it doesn't allow for).

 

So I suggest the simplest this for you to do is to enter the 1099-SA, answer that the expenses were all for qualified medical expenses, then document everything that happened in case anyone ever asks.

 

Since the instructions for the 8889 do not cover this situation, it's the best you can do."

 

See BillM223 Original post HERE.

 

For more information, see TurboTax article: What Is IRS Form 1099-SA: Distributions from an HSA, Archer MSA, or Medicare Advantage MSA?

 

TurboTax FAQ: What is Form 8889?

 

@mandygirl_15 

@BillM233