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Spooked by Unexpected Tax Letter

RhalloTonnyRhalloTonny Of the BrownlandsRegistered User regular
edited May 2019 in Help / Advice Forum
So I got a letter in the mail from my bank (who handles my HSA account) that they were furnishing information (Form 5498-SA) over to the IRS.

Needless to say, I got a little spooked!

Quick, relevant details:
  • Filed taxes in 2018
  • Got an HSA through work that started halfway through 2018.
  • My employer dumps some money in there every so often
  • I have never made a personal contribution
  • I have also never used the thing or touched it (lucky I haven't had to)
  • I had a CPA prepare my taxes this year. He asked if I had a HSA and I said I did, but I didn't use it at all, and then that was the end of that section of the conversation.
  • Pretty sure I didn't receive any tax form in the mail about the HSA, presumably because I didn't contribute or use it, but maybe I missed it?

So before I rev up the anxiety engine, figured I'd see if anyone knows if this is anything to worry about? I Googled around and didn't find anything particularly clarifying.

Should I be worried or dread an audit or something, or is this standard?

EDIT: I filled out a couple PDF IRS forms related to HSAs and contributions and the impact it has/result is always $0.00

EDIT 2: Shit. Turns out when I got hired, I set it up to add 13 bucks every month from my paycheck. Still never withdrew anything. Am I screwed?

!
RhalloTonny on

Posts

  • DevoutlyApatheticDevoutlyApathetic Registered User regular
    IIRC that would mean you overpaid taxes rather than underpaid. Even if it is the reverse it isn't a super huge deal, provided you do not ignore it.

    If it becomes a thing they'll send you a letter. Bring that to your CPA and you'll put together a response that like, worst case, is going to be "I inadvertently misreported my HSA account. Properly reporting it would have altered my tax burden by x. Here's a check/Where's my check?"

    You could even get out ahead of it by filing an amended return. I'd give your CPA a call about that.

    RhalloTonnyzepherinkime
  • Kayne Red RobeKayne Red Robe Master of Magic ArcanusRegistered User regular
    Yeah if you're adding to your HSA then you've overpaid on taxes by $13*however many paychecks you get. Probably not enough to matter and likely the bank that handles your HSA is sending the appropriate forms to the IRS on their own gumption rather than you getting audited.

    Mayabird
  • zepherinzepherin Registered User regular
    edited May 2019
    There’s probably a discrepancy, and the IRS is resolving it, they’ll resolve discrepancies that are a dollar off. If you owe them money they’ll send you a letter and ask for it. If they owe you money they’ll send you a check and a letter. It’s no big deal. Don’t answer emails or phone calls. They’ll communicate by snail mail.

    zepherin on
    DevoutlyApathetic
  • DarkPrimusDarkPrimus Registered User regular
    The only time I've ever gotten any mail about my taxes it was because it turned out I had overpaid. The paperwork I had gotten in the mail didn't say that it was anything in my favor, just that there was a discrepancy and that I needed to get in touch.

    Look up the official numbers to call for federal and/or state taxes (depending on what the paperwork says) and call those numbers to ask about the stuff you received. Hopefully it'll be in your favor.

    dt3GeqU.png
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    zepherin
  • zepherinzepherin Registered User regular
    DarkPrimus wrote: »
    The only time I've ever gotten any mail about my taxes it was because it turned out I had overpaid. The paperwork I had gotten in the mail didn't say that it was anything in my favor, just that there was a discrepancy and that I needed to get in touch.

    Look up the official numbers to call for federal and/or state taxes (depending on what the paperwork says) and call those numbers to ask about the stuff you received. Hopefully it'll be in your favor.
    Oh yeah plan about an hour. I've called the IRS twice (companies didn't send W-2/1099) and both times it was annoying and took forever.

  • DarkewolfeDarkewolfe Registered User regular
    There was a time when I forgot to report some stock income and got a letter from Charles Schwab about it. I just immediately filed a corrected tax return without waiting to hear from the IRS, paid what I owed plus a small fee, and that was it. This is a fairly common thing and not the end of the world.

    What is this I don't even.
    RhalloTonnyAngelHedgie
  • a5ehrena5ehren AtlantaRegistered User regular
    edited May 2019
    The only way you can get turbofucked by an HSA is if you spend the money on an unapproved (aka non-medical) use and have to pay taxes + penalties on that.

    Given the information you've provided, the only thing that should happen is that you overpaid your taxes by $13 * # of checks * marginal tax bracket.

    The timing of them sending the 5498-SA this late is kinda weird, but it is a normal form that you should receive every year going forward.

    a5ehren on
  • MugsleyMugsley Registered User regular
    Stupid question: were the HSA contributions not somewhere on your W2? I don't have an HSA so I don't know if it's handled separately.

  • zepherinzepherin Registered User regular
    Mugsley wrote: »
    Stupid question: were the HSA contributions not somewhere on your W2? I don't have an HSA so I don't know if it's handled separately.
    It is supposed to be.
    I think they usually go in box 12.

  • ASimPersonASimPerson And they will tremble again at the sound of our silence.Registered User regular
    a5ehren wrote: »
    The only way you can get turbofucked by an HSA is if you spend the money on an unapproved (aka non-medical) use and have to pay taxes + penalties on that.

    Given the information you've provided, the only thing that should happen is that you overpaid your taxes by $13 * # of checks * marginal tax bracket.

    The timing of them sending the 5498-SA this late is kinda weird, but it is a normal form that you should receive every year going forward.

    I just got my 5498-SA earlier this week. It's normal.

    RhalloTonny
  • evilmrhenryevilmrhenry Registered User regular
    The reason you're getting the form now is because you can contribute for 2018 up to April 15th 2019, so now is basically the earliest you could get it. Because this is, by definition, untaxed money, the IRS doesn't care about it. It should have been noted on your W2, so your taxes won't change. Basically, just stick it with your copy of your tax return, and forget about it.

    I found a FAQ that should have answers for anything else you might want to know.
    https://www.benefitresource.com/blog/hsa-5498-sa/

    zepherin
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