Welcome back! Ask questions, get answers, and join our large community of tax professionals.
• 1040X is now live in ProSeries to e-File amended returns. For more information, please view article
cancel
Showing results for
Did you mean:

## HSA

Highlighted
Level 2

A SINGLE PERSON RECEIVED A  1099-SA  BOX 1 DISTRIBUTION FOR \$3,900,HE CONTRIBUTED \$4,200 AND PAID \$12,000 IN MEDICAL EXPENSES IN 2019. THE 1040 SHOWED AN ADJUSTMENT OF \$4,200 WHICH IS MORE THAN THE \$3,900 THAT WAS DISTRIBUTED TO HIM.

Labels (1)
• ### ProSeries Basic

1 Solution

Accepted Solutions
Highlighted
Level 12

"THE 1040 SHOWED AN ADJUSTMENT OF \$4,200 WHICH IS MORE THAN THE \$3,900 THAT WAS DISTRIBUTED TO HIM."

No need to YELL. And the one has nothing to do with the other.

The Contribution amount is \$3,500 for a single person, + \$1,000 for someone 55 and over. That would be what is adjusted from income, as long as everything qualifies.

The amount Distributed is supposed to be either as Reimbursement for what he paid for medical costs not from the HSA, then submitted to be reimbursed from the HSA. Or, it was paid for directly from the HSA. The only limit here is Available Funds in the HSA, and the qualification is "qualified medical costs."

He could have \$1,000,000 in the HSA, put in the current year contribution, and end up having a surgery that requires him to pay his own share as all of that \$1,000,000 from the HSA. Contribution and Distribution are two different functions.

There is no Netting them against each other. Is there something you believe to be a specific problem in all of this?

*******************************
"Level Up" is a gaming function, not a real life function.
2 Replies 2
Highlighted
Level 15

Did you go to the Form 8889-T and mark the Self box on Line 2 Smart Worksheet (or maybe its line 3)?

â™ªâ™«â€¢*Â¨*â€¢.Â¸Â¸â™¥Lisaâ™¥Â¸Â¸.â€¢*Â¨*â€¢â™«â™ª
Highlighted
Level 12

"THE 1040 SHOWED AN ADJUSTMENT OF \$4,200 WHICH IS MORE THAN THE \$3,900 THAT WAS DISTRIBUTED TO HIM."

No need to YELL. And the one has nothing to do with the other.

The Contribution amount is \$3,500 for a single person, + \$1,000 for someone 55 and over. That would be what is adjusted from income, as long as everything qualifies.

The amount Distributed is supposed to be either as Reimbursement for what he paid for medical costs not from the HSA, then submitted to be reimbursed from the HSA. Or, it was paid for directly from the HSA. The only limit here is Available Funds in the HSA, and the qualification is "qualified medical costs."

He could have \$1,000,000 in the HSA, put in the current year contribution, and end up having a surgery that requires him to pay his own share as all of that \$1,000,000 from the HSA. Contribution and Distribution are two different functions.

There is no Netting them against each other. Is there something you believe to be a specific problem in all of this?

*******************************
"Level Up" is a gaming function, not a real life function.