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Interesting tax question on 1099-SA Distribution.

PreacherCruz 2,695 681 January 18, 2016 at 10:53 AM
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We never want to have any difficulties with the IRS or to be dishonest, so...

IF we took a distribution where we moved less than $500 to our personal account, so, in theory, that should be taxable since we didn't use those EXACT monies for medical expenses, however, we had more than that in qualified expenses through the year that were paid out of our personal accounts and CareCredit account.

So, the question is, do we have to say that this distribution was not used for medical expenses and pay taxes on it? Confused

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Joined Feb 2004
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#2
You can reimburse yourself from an HSA for medical expenses that were paid for via other accounts. The money does not have to go directly from the HSA to a doctor's office, for example. You should be good to go, just make sure to keep receipts, EOBs, etc to validate your claim if you're audited.
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Marshall: Have the rest of you guys figured out by now that mmathis is the smartest guy on SlickDeals?
Joined Apr 2006
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#3
Quote from mmathis View Post :
You can reimburse yourself from an HSA for medical expenses that were paid for via other accounts. The money does not have to go directly from the HSA to a doctor's office, for example. You should be good to go, just make sure to keep receipts, EOBs, etc to validate your claim if you're audited.
This is pretty much what I figured. If some of the payments we made were before the distribution that's OK right? Either way, we paid out much more last year than the distribution amount.
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#4
So long as you have QME's, what's the difference where the actual $$ came from?
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