Form 1099-SA

[Terry O]

Client's W-2 shows 1725 in pre tax contributions to HSA - - -then she added an additional $3000 after tax contribution in 2010 due to medical expenses.

Received a 1099-SA for gross distribution of $4085- - -Distribution code #1 - -and HSA Code for Box 5.

WHY is this taxable income to her? If so - -is there a way to deduct the FULL amount - -not just medical deductions subject to 7% income?

Thanks!

[JRS]

My 1099SA is exactly the same. Using Form 8889 will figure what part, if any, is taxable. In my situation all was used for medical.

[Janitor Bob]

Client's W-2 shows 1725 in pre tax contributions to HSA - - -then she added an additional $3000 after tax contribution in 2010 due to medical expenses.

Received a 1099-SA for gross distribution of $4085- - -Distribution code #1 - -and HSA Code for Box 5.

WHY is this taxable income to her? If so - -is there a way to deduct the FULL amount - -not just medical deductions subject to 7% income?

Thanks!

Make sure that on the 8889 Statement Page 1, you enter the amount of the distribution that was used for medical. If it was all for medical, then none of it will be taxable.

[Terry O]

OK - -found it - -I think. The expenses that the HSA were used for go on line 15. Which makes sense, since it was ALL used for Dr., deductibles & co pays.

Thank you All!