2007-04-14 03:31:01 · 3 answers · asked by dragon 2 in Business & Finance ➔ Taxes ➔ United States
IRS receives all of the unused money anyway, why would I pay taxes for the money IRS took away from me?
2007-04-14 03:47:51 · update #1
The IRS does not get your unused HSA funds, they are kept by the Plan that you set aside the money into.
It is not deductible as it was withheld tax free from your paycheck, so you were never taxed on that money to begin with.
2007-04-14 05:08:55 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Actually, quite the opposite. You can be taxed on the un-used portion of the health care spending account. This is because the portion set aside each pay is un-taxed at the time (in other words called pre-tax benefits). It is important to use all of that so you aren't penalized.
2007-04-14 10:44:17 · answer #2 · answered by Country Boy 5 · 1⤊ 1⤋
No, you can't deduct it. You've gotten a tax benefit already since the money hasn't been taxed when it went into the HSA.
2007-04-14 10:58:20 · answer #3 · answered by Judy 7 · 0⤊ 0⤋