Dead HSA acount impacting refund

Forum|Forum|1 year ago
March 16, 2025
1 reply
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Hi,

I have an old HSA account with money that's still there that I use on medical expenses. I haven't had a high deductible plan for years though because because we switched to a different plan but that money is still in there and I still get a gross distribution number that negatively impacts my tax refund amount. Am I missing something with additional information entered later? I feel like not having a HDP is making that money cost me more than it is helping me.

AnnetteB6

If you are receiving distributions from your Health Savings Account (HSA) and they are used to pay qualified medical expenses, then there should be no impact on your tax return to report those distributions.

The Form 1099-SA you receive should be entered in the Deductions and Credits > Medical > 1099-SA, HSA, MSA section of your return. After you enter the details from your form, there will be questions about whether the money was used to pay medical expenses. If you answer 'yes', then the distribution is not taxable.

The rest of that section of your return, you should indicate that you did have an HSA, but you did not have HDHP coverage.

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