Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Valued Pioneer
Posts: 4
Registered: ‎04-02-2014

HSA: How do we report HSA account maintenance fee in HRBlock software?

HSA: How do we report HSA account maintenance fee in HRBlock software? I have received the 1099-SA showing box3 gross distribution as $47/- for the monthly fee of $3.95/- I didn't use it for medial expense, but the service provider charged this fee. So it this my taxable distribution? Block software also adds $9/- as 20% penalty to it. I no longer work for the organization that myself and employer contributed into this account with.

 

Is there a form/place i might be missing in the HRBlock software?

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Neighbor
Posts: 72
Registered: ‎02-28-2016

Re: HSA: How do we report HSA account maintenance fee in HRBlock software?

[ Edited ]

The IRS specifically says that account fees are NOT to be reported as a distribution on 1099-SA. You HSA administrator has issued an incorrect form.

 

IRS Publication 969 specifically says,
"HSA administration and maintenance fees withdrawn by the trustee aren’t reported as distributions from the HSA.".
Your HSA bank should not issue Form 1099-SA (or any other form) for maintenance fees.

 

https://www.irs.gov/pub/irs-pdf/p969.pdf

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