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

Forum|Forum|1 year ago
April 12, 2025
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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?

TurboTax Deluxe Online

TomK2023

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

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