Last Updated: April 14, 2021
A quick note for Lively account holders: our 2020 HSA contribution cut-off time is 1pm PDT / 4pm EDT May 17th (or June 15th for account holders who live in Texas, Oklahoma or Louisiana).
If you have an HSA, you may be wondering what additional tax forms you’ll need to know about come April 15th. Good news: There are only a few extra forms you need to know about when filing your taxes. Extra good news: the CARES Act introduced some new changes to HSAs this year that may benefit you.
A health savings account (HSA) is a tax-advantaged savings account that you may open and contribute to if you are enrolled in a qualified high deductible health plan (HDHP). These two are paired because the contributions you make to your HSA are supposed to help you cover your deductible and other out-of-pocket medical expenses that are typically higher with high deductible health plans than with traditional plans.
HSAs are considered to be triple tax-advantaged. This refers to the fact that contributions to your HSA are tax-deductible, funds in your HSA grow tax-free, and qualified distributions are also tax-free. There are annual limits to how much you may contribute to your HSA. There are also limits as to what is considered to be a qualified medical expense.
In this guide we will cover:
- 2020 Federal Tax Extension
- How HSAs are taxed
- Tax forms associated with having an HSA
- Need-to-know info on HSA contributions and distributions
- New HSA rules from the CARES Act
Let’s dive in.