How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier).
•If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form
8889. However, the distribution of an excess contribution taken out after the due date
, including extensions
, of your return is subject to tax even if used for qualified medical expenses. Follow the instructions for the form and file it with your Form 1040
•If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Report the amount on Form 8889 and file it with your Form 1040. You may have to pay an additional 20% tax on your taxable distribution.
and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA.
There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Figure the tax on Form 8889 and file it with your Form 1040.
There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
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