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July 6, 2024
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If i only use my hsa for qualified expenses, does it have any effect on my taxes?

  • July 6, 2024
  • 1 reply
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do i even need to include it?
Best answer by dmertz

When used for qualified medical expenses, HSA distributions are not taxable but are required to be reported on Form 8889 Part II.  If not present on Part II of Form 8889, the IRS will treat the distribution as taxable and potentially subject to an additional 10% tax.

1 reply

dmertzAnswer
Employee
July 6, 2024

When used for qualified medical expenses, HSA distributions are not taxable but are required to be reported on Form 8889 Part II.  If not present on Part II of Form 8889, the IRS will treat the distribution as taxable and potentially subject to an additional 10% tax.