Question

HSA distribution income and carryover losses

Forum|Forum|1 year ago
December 9, 2024
1 reply
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I'm over 65 and have $5700 in unused capital losses from 2022.

For 2023 if I take a non-qualified HSA distribution of $5000 will I be able to use $3000 of the carryover losses against the $5000 distribution and only have to pay income tax on $2000?

Not A Product Question

O

Opus 17

Employee

Yes, but it's not really that specific. You can deduct $3000 of losses against any other taxable income, it doesn't have to be an HSA distribution.

T

TN9Author

Thank you for the prompt reply.

Piggybacking on the question, if I also have $500 in capital losses from a crypto sale. Would I be able to use another $500 of the carryover losses in addition to the $3000 (total of $3500) that will offset the ordinary income?

VolvoGirl

Employee

No. After netting your gains and losses you can only deduct up to 3,000 per year. The rest you have to carryover. If you had 500 of GAINS you could use up 3,500 of losses.