HSA Distribution - No 1099-SA available

[kjm1059]

Hello,

Appearing on my client's W-2 is an HSA Employer Contribution (code W) in the amount of approx $1,000.  Typically, a corresponding 1099-SA is received that identifies the distributions from the HSA.

In this case, my client does not have a 1099-SA and is no longer employed by this organization.  My client has stated that she spent the entire $1,000 on qualified medical expenses.

How do I enter  the $1,000 medical expenses in Proseries without having  the benefit of the 1099-SA so that the client is not taxed on the $1,000 via the code W.

Any help is greatly appreciated.

Thank you

[qbteachmt]

"My client has stated that she spent the entire $1,000 on qualified medical expenses."

"Appearing on my client's W-2 is an HSA Employer Contribution (code W) in the amount of approx $1,000."

You realize the one has nothing to do with the other?

You put money aside, and even if you never spend it, as long as that HSA is qualified as a result of having HDHP coverage, there is nothing to do except enter the W2.

Meanwhile, a person might incur no medical costs, some medical costs, lots of medical costs. They might or might not pay by cash, personal check, credit card, or chickens. Or, they use the HSA. This might be years and years later from when the funds were deposited.

For the spending out of the HSA, you are issued a 1099-SA. That's when you need to validate that all spending was "qualified" to be made out of the HSA.

There is no Match by Year, of deposits to spending. Perhaps you are thinking of FSA?

[qbteachmt]

Oh, one more item:

So what that the person no longer works there? An HSA is their own account, not the employer's. You might have a HSA with $$$ in it, and you leave that employer or go on Medicare. You keep that account and keep spending from it. You just cannot keep putting into it, once you are on Medicare. But if you are not, and your new employer has qualifying coverage that you accept, you can start depositing to your existing HSA, again.

Hope that helps.

Maybe they really have FSA.