amount of the original charge. There ended up being two credits that were >the exact amount of the one original debit. I don't know what the dollar >amount was but I assume it's in the $25 to $50 range. Question is does my >friend have to do anything else now to deal with this.
According to Fred <fredwlin@gmail.com>:
amount of the original charge. There ended up being two credits that
were
the exact amount of the one original debit. I don't know what the dollar >>amount was but I assume it's in the $25 to $50 range. Question is does
my
friend have to do anything else now to deal with this.
I don't think so. At the end of the year Form 8889 says how much she took >out of the HSA and how much was used for non-medical expenses. With the >credits
netting out the debit, the non-medical amount should still be zero.
Even if they screwed up again and reported a $25 non-medical withdrawal,
the tax
due would be pretty small. It's not illegal to use an HSA for non-medical >stuff, you just lose the tax benefit, and if you're under 65 pay an extra
20%
on the non-medical amount.
Not sure if this is totally legit, but I have heard that in the reverse >situation - where you forget to use your HSA card for a medical expense and >pay for it, say, with a credit card - you can request that an equivalent >amount be paid to you from the card to compensate for not using the HSA card >for the medical expense.
I have also heard that if you accidentally use
the card for a non-medical expense, as in the example in the original post, >say $25, you can effectively make yourself whole by making sure that you >incur another $25 in actual medical expenses that you pay for with another >means, such as a regular credit card or cash. The idea seems to be that if >the total amount you charge with the HSA card (even if it includes >non-medical charges) is less than or equal to the total of the unreimbursed >medical charges you incurred (even if they are from prior years, as long as >its from after the time you opened the account) you're okay.
John,
Don't forget to save your original receipts till the year you get your HSA distribution to pay for them, as the IRS would want them if they were to look into your tax return for that year.
It appears that Maria Ku <maria...@gmail.com> said:
John,The Lively web site, which is remembering all of my unreimbursed medical expenses, strongly encourages
Don't forget to save your original receipts till the year you get your HSA distribution to pay for them, as the IRS would want them if they were to look into your tax return for that year.
me to upload scanned copies of the receipts, so I do. I hope the IRS would accept those in lieu of
brittle old cash register receipts.
--
Regards,
John Levine, jo...@taugh.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly
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