How Much Will I Owe for Using My HSA Card on Non-Eligible? - HSA Awareness

Have you ever wondered how much you would owe for using your HSA card on non-eligible expenses? Let's break it down for you!

When you use your HSA card to pay for expenses that are not considered eligible under IRS regulations, you will be subject to certain penalties and taxes.

Here's what you need to know:

• If you use your HSA card for non-eligible expenses, you will owe income tax on the amount used.
• In addition to income tax, you will also be required to pay a 20% penalty on the non-eligible amount.
• It's important to keep track of your HSA expenditures and ensure that you are only using the funds for qualified medical expenses.

Remember, the whole idea behind an HSA is to help you save for medical costs in a tax-advantaged way. Using it for non-eligible expenses defeats this purpose and can end up costing you more in the long run.

It's always a good idea to consult with a financial advisor or tax professional if you have any questions about using your HSA funds.

Using your HSA card for non-eligible expenses can lead to unforeseen consequences, including extra taxes. It's crucial to know which expenses qualify under IRS guidelines!