are payments made for medical expenses from hsa taxable income
You will use this form to: • Report your tax deduction for HSA contributions (deduction from gross income) • Report your taxable non-qualified HSA distributions. • Report 6% excise tax on excess contributions you did not withdraw by the tax filing deadline. The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses. You report the taxable amount on the “other income” line of your tax return and write “HSA” beside it. No, if you have single coverage you are limited to the individual HSA contribution limit. You may use your HSA funds to pay for the qualified medical expenses of family members (see Distributions, question 6) however, the amount you may contribute to your HSA is limited by the level of your insurance coverage. HSA distributions (withdrawals) in 2014. NOT considered distributions, and are not reported on this form. HSA contributions made 1/1/14 -12/31/14 AND 1/1/15 - 4/15/15. qualified distributions to your UMB HSA and HSA or MSA rollovers to your UMB HSA. this form. 1040 This form is your Individual Income Tax Return. Yes, HSA distributions used to pay for Long Term Care Insurance premiums qualify as a tax-free, penalty-free distribution; however, the amount is limited. The amount allowed is based on age and adjusted for inflation each year. See Revenue Code 213(d)(10). No. The new law will limit Flexible Spending Accounts (FSAs) contributions to $2,500 starting in 2013, but that new law does not apply to HSAs. You can continue to use any amounts in your HSA for eligible medical expenses or save it for later even if you are no longer eligible to contribute more to your HSA. This is important to know in case you do change plans to a non-HSA eligible plan to comply with the new law. Qualified medical expenses. None of the money received from these plans is taxable if it is spent on qualified medical expenses. If the money you withdraw exceeds your qualified medical expenses, however, the excess is subject to income tax. You will receive a Form 1099-SA that shows the total amount of your annual distributions (i.e. money you used) reported in box 1. Provided you only use the funds to pay qualified medical expenses, box 3 should show the distribution code No. 1, which indicates normal tax-free distributions. You can use your HSA to pay for health insurance premiums of your spouse or dependents in the case when your spouse or your dependent are: (1) receiving health care continuation coverage through COBRA, or (2) are receiving unemployment compensation through a federal or state program. Earnings on your balance and investments are not taxed. 3. 1Distributions (withdrawals) used to pay for qualified medical expenses are not taxed. Neither UMB Bank n.a., its parent, subsidiaries nor affiliates are engaged in rendering tax or legal advice and this checklist is not intended. as tax or legal advice. All mention of taxes is made in reference to federal tax law.
Yes, You may use your HSA funds to pay for the qualified medical expenses of family members.