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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4671
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have a hba debit card with a gh balance, that limits my

Customer Question

I have a hba debit card with a high balance, that limits my usuage of the card. However, If I use online services with the account for other transactions that would go through, I face penalty by the Irs, as well as the taxes associated. Is there a way to judge what the penalty would be?
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'mCustomer I'll assist.

Expert:  PDtax replied 1 year ago.

Ineligible spending is treated as taxable income and a 10% penalty for those items. The amounts are likely state taxable as well.

Thanks for asking at just answer. Positive feedback when you rate my assistance is appreciated. I'mCustomer

Expert:  PDtax replied 1 year ago.

Hi again.Customerhere. Just following up on my response.

If this answered your questions, please rate my assistance to close out your inquiry.