Do I owe taxes on the distributions from my Health Savings Account (HSA)?
Any distributions you use to pay qualified medical expenses won't be included in your income. Qualified medical expenses are those that you could deduct as an itemized deduction on Schedule A. You can find the list of these expenses in IRS Publication 502.
Make sure to keep records of all medical expenses paid with HSA distribution funds. If you use distributions for anything other than qualified medical expenses, those amounts will be included in your taxable income.
The taxable portion of HSA distributions might also be subject to an additional 20% tax.
Make sure to keep records of all medical expenses paid with HSA distribution funds. If you use distributions for anything other than qualified medical expenses, those amounts will be included in your taxable income.
The taxable portion of HSA distributions might also be subject to an additional 20% tax.
