I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!We are having an issue with our taxes in regards to our HSA. We maxed it out in the first half of the year and spent it in the first half of the year on medical costs. But then DH got a job with medical insurance after that that did not have an HSA. So now they are saying that we can only claim part of that based on the months we had our own self-payed insurance, not the fact that we used it all during the time we had one.
We can't just put the money back because the government counts that as putting in additional money, not returning it to the fund. We don't have the money, regardless, because we spent it on medical bills. The people at the credit union where we have our HSA have no idea what to do to fix it. They assume there should be some paperwork, but they don't know what is is and have never had this issue come up before.
We really can't afford to go see a tax professional as we are barely keeping our heads above water right now due to medical costs, so I was hoping one of you here that is one could tell us what form we need to fix this and possibly where it is located? DH is looking for info on the IRS Website, but you all know that that is like looking for a needle in a haystack, assuming you even have the right haystack to begin with.
Help on Taxes--HSA Related
February 17th, 2018 at 12:18 am
February 17th, 2018 at 12:44 am 1518828286
February 17th, 2018 at 04:56 am 1518843413
February 17th, 2018 at 01:36 pm 1518874568
In a perfect world I'd have the HSA custodian reclassify the dollars that need to be taken back out. So instead of reporting it as a distribution (spent on medical expenses) it should really be subtracted from your 2017 contributions. That said, HSAs are relatively new and I don't know that I've ever had an HSA company actually issue this type of correction. I'd just keep records and wouldn't lose sleep over it. In contrast, IRAs and 401ks have been around forever and I'd probably demand they fix mistakes like this and correct their tax forms. & if you push enough they will. But in my experience HSA custodians are kind of like, "Not my problem" and I doubt they will be able to figure it out. You can ask though. It just doesn't really matter too much. For your tax records, I'd keep a copy of the account statements for the year, showing you didn't leave the money in there. Is all that really matters.
February 25th, 2018 at 11:10 pm 1519600200