Medicare/HSA

[peggysioux]

Have a new client who is 70 years old and has been on Medicare for some time. She also has a HSA that she has continued to make contributions (even though she is no longer eligible). The tax preparer who handled her 2016 tax return completed form 8889 showing "self-only" coverage and showed no HSA contributions for 2016 (but taxpayer did make contributions). Tax preparer completed part II showing total distributions and medical expenses to match. At this point, do I just need to make sure that no deductions were made for contributions and what the earning were on the ineligible contributions to include as "other income" on current tax year?

Peggy Sioux

[kathyc2]

Have a new client who is 70 years old and has been on Medicare for some time. She also has a HSA that she has continued to make contributions (even though she is no longer eligible). The tax preparer who handled her 2016 tax return completed form 8889 showing "self-only" coverage and showed no HSA contributions for 2016 (but taxpayer did make contributions). Tax preparer completed part II showing total distributions and medical expenses to match. At this point, do I just need to make sure that no deductions were made for contributions and what the earning were on the ineligible contributions to include as "other income" on current tax year?

Peggy Sioux

That sounds right. I would also get the 5498 or HSA bank statements. I've found that clients are often confused about what they did with their HSA account.

[peggysioux]

Medicare/HSA

That sounds right. I would also get the 5498 or HSA bank statements. I've found that clients are often confused about what they did with their HSA account.

Thanks Kathy.