With everything happening right now, it may be easy to forget that tax season will be here before we know it. Usually April 15, the federal tax deadline has been extended to July 15, 2020. Though you may have a few extra months to file, it’s still important to be prepared.
If you have a health savings account (HSA), but aren’t sure how to report HSA contributions and distributions (money you withdrew, if applicable) on your tax forms, we’ve got you covered. Because the HSA offers so many tax advantages—tax-free contributions, tax-free earnings on HSA funds, and tax-free withdrawals for qualified medical expenses—the IRS requires specific reporting for these accounts.
We’ve put together this easy guide to clarify how an HSA may be taxed and what forms you may need to file for your HSA.
Filing taxes can be a chore, but it doesn’t have to be overwhelming! Whether you file on your own or with the help of a tax advisor or accountant, we hope this guide helped to sharpen your knowledge in preparation for your HSA tax responsibilities. Happy tax season!