HSA

AVT
AVT Member Posts: 1 Newcomer
in Filing my taxes

Hello!

I am trying to figure out a few things with an HSA.

  1. Opened an HSA
  2. Funded the HSA to 4150 (max individual)
  3. Found out that I was not covered, due to clerical error from insurance company.
  4. Closed the account, and given a 4760 check.

I understand the excess, but how do I file the earnings on this amount (610)?

Thanks!

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Answers

  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent Posts: 18

    Hello AVT,

    If this was all done in 2024 it can be reported on your 2024 tax return. You will want to enter the HSA contributions ($4150) and distribution ($4760) in the software and indicate that the distribution was not used for medical expenses. You will also want to indicate that the $4,150 was withdrawn as excess contributions and that you were not an eligible individual for 2024. The $4,150 contribution and withdrawal will then be reported on Form 8889 and the $610 in earnings will then be included as taxable income on Schedule 1 (Form 1040), Part I, Line 8f.

    If you need more specific guidance on the screens to enter this in the software please reach out to us directly through the support center.

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