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January 30, 2020
Question

I’m doing my taxes, and on the health insurance part. It’s saying I have an extra $117 in my HSA account, and that it will be taxed an extra 6% if I don’t use that $117 by April 15, 202

  • January 30, 2020
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DawnC
Employee
January 30, 2020

Are you sure that is what it says?  Or does it say that you have contributed $117 too much that needs to be removed?  Or is it possible you are talking about an FSA?  An FSA is a ''use it or lose it'' type account.   You do not have to use all of the money in an HSA but you are not allowed to over-fund it in any one year.   

 

Go back through that section and carefully read the screens.  It is important to remove the excess contribution from your HSA by 04/15 in order to avoid that penalty.  But this does not mean you must spend it, it means you need to contact your human resources department or the HSA custodian bank and have them refund those contributions to you.  

 

Basically, you received a tax break (the funds in there are not taxed) that you were not entitled to.  

 

 

 

 

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