![]() ![]() This refers to the fact that contributions to your HSA are tax-deductible, funds in your HSA grow tax-free, and qualified distributions are also tax-free. HSAs are considered to be triple tax-advantaged. These two are paired because the contributions you make to your HSA are supposed to help you cover your deductible and other out-of-pocket medical expenses that are typically higher with high deductible health plans than with traditional plans. Good news: There are only a few extra forms you need to know about when filing your taxes.Ī health savings account (HSA) is a tax-advantaged savings account that you may open and contribute to if you are enrolled in a qualified high deductible health plan (HDHP). If you have an HSA, you may be wondering what additional tax forms you’ll need to know about come April 18th. No extension has been announced yet for this year. Just enter the amount of the distributions on the Health Savings Account screen on your return, and you’ll be home free.ĭon’t forget to sign up or log in to file your taxes with 1040.The tax deadline to file 2021 taxes is April 18, 2022. We like keeping taxes simple, and that even goes if you have HSA information to report on your return. Filing your taxes with HSA info is easy with You’ll receive Form 1099-SA either by mail or electronically-this form will show how much money was distributed in the year from your HSA, and whether it was for qualifying expenses or not. When you file your tax return, you have to report any withdrawals you made during the year (also known as distributions). What HSA information do I need to report on my taxes? Note: You can’t have an HSA of your own if you’re a dependent on someone else’s tax return. Otherwise, you can set up an HSA at most banks or credit unions. Your employer may set one up through your insurance company. To qualify for an HSA, you need to be enrolled in a High Deductible Health Plan (HDHP), and that deductible must be at least $1,400 for an individual, or at least $2,800 for families. ![]() What kind of insurance plan do I need to have to qualify for an HSA? Note: If you pay for a qualifying medical expense from an HSA, you can’t also claim the expense as a medical deduction on your return. You don’t need to submit any of the receipts when you e-file your return, but it’s a good idea to keep the receipts in case the IRS questions an expense. Keep receipts for any expense you use your HSA for, including doctor co-pays, prescriptions, and medical supplies. Over-the-Counter Medications – Because of the CARES Act, you can now use HSA funds to pay for OTC meds like painkillers, fever reducers, and more. Hsa qualified expenses 2021 professional#Professional services, medical treatments, and laboratory tests. ![]() Some HSAs provide paper checks and online bill paying, too.Īs long as your insurance doesn’t cover them OR reimburse you, qualifying expenses are the same as those qualifying for the medical expense deduction, like: You can use an HSA for qualifying medical expenses, and most HSAs provide a debit card for easy use. What sort of medical expenses can I use my HSA for? Not claiming the non-qualifying expenses may lead to an audit, and you’ll be subject to penalties and fines. You must self-report any non-qualifying purchases on the Health Savings Account screen. Careful: Whatever your maximum is, if you exceed it, a 6% penalty will be assessed. If you’re 55 years or older, you may contribute up to another $1,000 as a catch-up contribution, whether you have single or family coverage. If your insurance plan covers you and your family, you or your employer may contribute up to $7,200. If you’re the only person your insurance covers, you and/or your employer could contribute up to $3,600 annually. You, your employer, or both can contribute to an HSA, but there are maximums for allowable contributions. Who can contribute to my HSA and how much?
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