Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-05-2017, 01:51 PM
Junior Member
 
Join Date: Jan 2017
Posts: 1
HSA Account question

My wife was in an Auto accident. we used our Health savings account to pay med bills. but we were later reimbursed by the insurance company and did not put the money back in our HSA account.. do I have to claim that amount on my taxes or will the iRS have no knowledge of my reimbursement?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-05-2017, 11:24 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by cg77nh View Post
My wife was in an Auto accident. we used our Health savings account to pay med bills. but we were later reimbursed by the insurance company and did not put the money back in our HSA account.. do I have to claim that amount on my taxes or will the iRS have no knowledge of my reimbursement?
That is what is referred to as an erroneous distribution. You, the account holder, can repay the erroneous distribution by April 15 of the following year with no penalty if there is reasonable evidence that the original distribution was made in good faith and that it was a qualified medical expense. The repayment is classified as an adjusted entry, not a contribution; therefore it would not count twice toward the yearly maximum. if you pay with the HSA and the money is reimbursed from insurance later, that means you did not pay with the HSA so it would be a taxable withdrawal to you however, if you put the money back in the HSA, that would go towards current year contributions.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ugma Account sdeo Income 1 05-11-2014 06:05 AM
Childcare Flexible Account union410 For 2013 0 11-11-2013 04:40 PM
I opened a brokrage account as IRA joeangusbeef IRA/Sep 1 07-24-2010 01:57 PM
IRA Account & Dividends tc93 IRA/Sep 1 02-04-2010 11:01 PM
Closing a 529 account jpaatc Education Planning 1 08-05-2009 09:03 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.