What expenses can you use an HSA for?

Common eligible expenses include dental treatment, orthodontia, prescription drugs, diagnostic services, hospital services and surgery, laboratory fees, obstetrical expenses, chiropractic care, physical therapy, eye examinations, glasses, contact lenses, laser eye surgery, hearing aids, smoking cessation programs, and …

Does the IRS audit your HSA?

HSA account holders are responsible for reporting their own distributions to the IRS through Tax Form 8889. It’s recommended that HSA owners keep records of all their distributions, in the event, they ever become audited by the IRS.

What are the HSA rules for 2020?

Consumers can contribute up to the annual maximum amount as determined by the IRS. Maximum contribution amounts for 2020 are $3,550 for self-only and $7,100 for families. The annual “catch- up” contribution amount for individuals age 55 or older will remain $1,000.

Can I use my HSA for my wife if she is not on my plan?

As long as your spouse’s non-HDHP does not cover you, you remain an eligible individual and can participate in an HSA. As long as you are covered under a High Deductible Health Plan (HDHP) you may open and contribute to an HSA.

What happens if I don’t have an HSA receipt?

Essentially, any money that comes out of your HSA must have a receipt showing it was for an eligible medical expense. The only time you don’t need a receipt showing the distribution was for an eligible medical expense is when you rollover funds into another HSA.

Do you have to report HSA spending?

You must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return.

What taxes are HSA exempt from?

Earnings, such as interest and dividends from the money contributed to an HSA, are tax-exempt at the federal level. Interest or other investment income earned on the contributions are not included on your tax return.

What are the requirements of a HSA?

Individuals must be covered by a qualified High Deductible Health Plan ( HDHP) in Zenefits.

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  • The maximum out-of-pocket expenses (deductibles) are capped for individual and for family coverage.
  • What tax forms will I receive with my HSA?

    What IRS Forms You’ll Need For Tax Year 2019 (And What To Do With Them) IRS Form 1040 – This is your individual income tax return. IRS Form 8889 – This form is specific to HSAs. IRS Form 1099-SA – This form is sent to you in early February already filled out by your HSA custodian and should be used to help you complete your IRS

    How much to put into HSA?

    Of course, there are limits to how much you can put into your HSA account each year. For 2015, individuals can contribute $3,350 and families can contribute $6,650. Those 55 and older can contribute an additional $1,000 to those numbers.