Taxation of Distributions. The taxation of HSA distributions depends on whether the distribution is for a qualified medical expense. Generally, distributions paid due to qualified medical expenses are excluded from your gross income. Qualified medical expenses are amounts you pay for medical care (as defined in the Code Section 213(d)) for yourself, your spouse and your dependents (as defined in the Code Section 152), but only to the extent that such amounts are not covered by insurance or otherwise. Distributions made for purposes other than qualified medical expenses are included in your gross income and are subject to an additional twenty percent (20%) tax on the includable amount.
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Samples: Custodial Agreement and Disclosure Statement, Custodial Agreement and Disclosure Statement, Custodial Agreement and Disclosure Statement
Taxation of Distributions. The As discussed above, the taxation of HSA distributions depends on whether the distribution is for a qualified qualifying medical expense. Generally, distributions paid due to qualified medical expenses are excluded from your gross income. Qualified Qualifying medical expenses are amounts you pay for medical care (as defined in the Code Section 213(d)) for yourself, your spouse and your dependents (as defined in the Code Section 152), but only to the extent that such amounts are not covered compensated for by insurance or otherwise. Distributions made for purposes other than qualified medical expenses are included in your gross income and are subject to an additional twenty percent (20%) tax on the includable amount.
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Samples: Health Savings Account Custodial Agreement, Health Savings Account Custodial Agreement, Health Savings Account Custodial Agreement
Taxation of Distributions. The taxation of HSA distributions depends on whether the distribution is for a qualified medical expense. Generally, distributions paid due to qualified medical expenses are excluded from your gross income. Qualified medical expenses are amounts you pay for medical care (as defined in the Code Section 213(d)) for yourself, your spouse and your dependents (as defined in the Code Section 152), but only to the extent that such amounts are not covered by insurance or otherwise. Distributions made for purposes other than qualified medical expenses are included in your gross income and are subject to an additional twenty ten percent (2010%) tax on the includable amount.
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