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Turbotax Amended Return 2011

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Turbotax Amended Return 2011

Turbotax amended return 2011 35. Turbotax amended return 2011   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Turbotax amended return 2011 Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Turbotax amended return 2011 Este capítulo explica en términos generales estos créditos tributarios por estudios. Turbotax amended return 2011 Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Turbotax amended return 2011 ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Turbotax amended return 2011 Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Turbotax amended return 2011   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Turbotax amended return 2011   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Turbotax amended return 2011 Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Turbotax amended return 2011    Tabla 35-1. Turbotax amended return 2011 Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Turbotax amended return 2011   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Turbotax amended return 2011   Existen varias diferencias entre estos dos créditos. Turbotax amended return 2011 Estas diferencias se resumen en la Tabla 35-1, más adelante. Turbotax amended return 2011 Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Turbotax amended return 2011 Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Turbotax amended return 2011 Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Turbotax amended return 2011 Período académico. Turbotax amended return 2011   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Turbotax amended return 2011 En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. Turbotax amended return 2011 Institución de enseñanza superior que reúne los requisitos. Turbotax amended return 2011   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. Turbotax amended return 2011 Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Turbotax amended return 2011 La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Turbotax amended return 2011   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Turbotax amended return 2011 ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Turbotax amended return 2011 Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Turbotax amended return 2011 Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Turbotax amended return 2011 Gastos pagados por un tercero. Turbotax amended return 2011   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Turbotax amended return 2011 Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Turbotax amended return 2011 Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Turbotax amended return 2011 Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Turbotax amended return 2011 ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Turbotax amended return 2011 Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Turbotax amended return 2011 Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Turbotax amended return 2011 Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Turbotax amended return 2011 Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Turbotax amended return 2011   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Turbotax amended return 2011 No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Turbotax amended return 2011 Para más detalles, vea la Publicación 970, en inglés. Turbotax amended return 2011   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Turbotax amended return 2011    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Turbotax amended return 2011 Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Turbotax amended return 2011 En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Turbotax amended return 2011 Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Turbotax amended return 2011 Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Turbotax amended return 2011 No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Turbotax amended return 2011 Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Turbotax amended return 2011 Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Turbotax amended return 2011 Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Turbotax amended return 2011 Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Turbotax amended return 2011 Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Turbotax amended return 2011 Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Turbotax amended return 2011 Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Turbotax amended return 2011 Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Turbotax amended return 2011 Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Turbotax amended return 2011 Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Turbotax amended return 2011 Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Turbotax amended return 2011 Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Turbotax amended return 2011 Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Turbotax amended return 2011 Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Turbotax amended return 2011 Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Turbotax amended return 2011 Gastos pagados por adelantado. Turbotax amended return 2011   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Turbotax amended return 2011 Vea Período académico , anteriormente. Turbotax amended return 2011 Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Turbotax amended return 2011 No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Turbotax amended return 2011 Gastos pagados con un préstamo. Turbotax amended return 2011   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Turbotax amended return 2011 Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Turbotax amended return 2011 Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Turbotax amended return 2011 Si el estudiante se retira de uno o más cursos. Turbotax amended return 2011   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Turbotax amended return 2011 No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Turbotax amended return 2011 Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Turbotax amended return 2011 Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Turbotax amended return 2011 Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Turbotax amended return 2011 Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Turbotax amended return 2011 Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Turbotax amended return 2011 El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Turbotax amended return 2011 Ayuda económica para estudios exenta de impuestos. Turbotax amended return 2011   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Turbotax amended return 2011 Vea Período académico , anteriormente. Turbotax amended return 2011   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Turbotax amended return 2011   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Turbotax amended return 2011 Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Turbotax amended return 2011 Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Turbotax amended return 2011 Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Turbotax amended return 2011 Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Turbotax amended return 2011 Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Turbotax amended return 2011 Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Turbotax amended return 2011 Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Turbotax amended return 2011 Reembolsos. Turbotax amended return 2011   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Turbotax amended return 2011 Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Turbotax amended return 2011 Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Turbotax amended return 2011 Reembolsos recibidos en 2013. Turbotax amended return 2011   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Turbotax amended return 2011 Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Turbotax amended return 2011   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Turbotax amended return 2011 Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Turbotax amended return 2011   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Turbotax amended return 2011 Vea Recuperar (reintegrar) el crédito, a continuación. Turbotax amended return 2011 Recuperar (reintegrar) el crédito. Turbotax amended return 2011   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Turbotax amended return 2011 Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Turbotax amended return 2011 Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Turbotax amended return 2011 Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Turbotax amended return 2011 Ejemplo. Turbotax amended return 2011   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Turbotax amended return 2011 Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Turbotax amended return 2011 20). Turbotax amended return 2011 Usted no reclamó otros créditos tributarios. Turbotax amended return 2011 Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Turbotax amended return 2011 Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Turbotax amended return 2011 El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Turbotax amended return 2011 Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Turbotax amended return 2011 Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Turbotax amended return 2011    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Turbotax amended return 2011 Cantidades que no reducen los gastos de estudios calificados. Turbotax amended return 2011   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Turbotax amended return 2011   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Turbotax amended return 2011 El uso del dinero no está limitado. Turbotax amended return 2011   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Turbotax amended return 2011 Please click here for the text description of the image. Turbotax amended return 2011 Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications
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The Turbotax Amended Return 2011

Turbotax amended return 2011 Publication 969 - Main Content Table of Contents Health Savings Accounts (HSAs)Qualifying for an HSA Contributions to an HSA Distributions From an HSA Balance in an HSA Death of HSA Holder Filing Form 8889 Employer Participation Medical Savings Accounts (MSAs)Archer MSAs Contributions to an MSA Distributions From an MSA Balance in an Archer MSA Death of the Archer MSA Holder Filing Form 8853 Employer Participation Medicare Advantage MSAs Flexible Spending Arrangements (FSAs)Qualifying for an FSA Contributions to an FSA Distributions From an FSA Balance in an FSA Employer Participation Health Reimbursement Arrangements (HRAs)Qualifying for an HRA Contributions to an HRA Distributions From an HRA Balance in an HRA Employer Participation How To Get Tax HelpLow Income Taxpayer Clinics Health Savings Accounts (HSAs) A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. Turbotax amended return 2011 You must be an eligible individual to qualify for an HSA. Turbotax amended return 2011 No permission or authorization from the IRS is necessary to establish an HSA. Turbotax amended return 2011 You set up an HSA with a trustee. Turbotax amended return 2011 A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. Turbotax amended return 2011 The HSA can be established through a trustee that is different from your health plan provider. Turbotax amended return 2011 Your employer may already have some information on HSA trustees in your area. Turbotax amended return 2011 If you have an Archer MSA, you can generally roll it over into an HSA tax free. Turbotax amended return 2011 See Rollovers, later. Turbotax amended return 2011 What are the benefits of an HSA?   You may enjoy several benefits from having an HSA. Turbotax amended return 2011 You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Turbotax amended return 2011 Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income. Turbotax amended return 2011 The contributions remain in your account until you use them. Turbotax amended return 2011 The interest or other earnings on the assets in the account are tax free. Turbotax amended return 2011 Distributions may be tax free if you pay qualified medical expenses. Turbotax amended return 2011 See Qualified medical expenses , later. Turbotax amended return 2011 An HSA is “portable. Turbotax amended return 2011 ” It stays with you if you change employers or leave the work force. Turbotax amended return 2011 Qualifying for an HSA To be an eligible individual and qualify for an HSA, you must meet the following requirements. Turbotax amended return 2011 You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. Turbotax amended return 2011 You have no other health coverage except what is permitted under Other health coverage , later. Turbotax amended return 2011 You are not enrolled in Medicare. Turbotax amended return 2011 You cannot be claimed as a dependent on someone else's 2013 tax return. Turbotax amended return 2011 Under the last-month rule, you are considered to be an eligible individual for the entire year if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers). Turbotax amended return 2011 If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse's coverage does not cover you. Turbotax amended return 2011 If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an HSA contribution. Turbotax amended return 2011 This is true even if the other person does not actually claim your exemption. Turbotax amended return 2011 Each spouse who is an eligible individual who wants an HSA must open a separate HSA. Turbotax amended return 2011 You cannot have a joint HSA. Turbotax amended return 2011 High deductible health plan (HDHP). Turbotax amended return 2011   An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Turbotax amended return 2011 Out-of-pocket expenses include copayments and other amounts, but do not include premiums. Turbotax amended return 2011   An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Turbotax amended return 2011 Preventive care includes, but is not limited to, the following. Turbotax amended return 2011 Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals. Turbotax amended return 2011 Routine prenatal and well-child care. Turbotax amended return 2011 Child and adult immunizations. Turbotax amended return 2011 Tobacco cessation programs. Turbotax amended return 2011 Obesity weight-loss programs. Turbotax amended return 2011 Screening services. Turbotax amended return 2011 This includes screening services for the following: Cancer. Turbotax amended return 2011 Heart and vascular diseases. Turbotax amended return 2011 Infectious diseases. Turbotax amended return 2011 Mental health conditions. Turbotax amended return 2011 Substance abuse. Turbotax amended return 2011 Metabolic, nutritional, and endocrine conditions. Turbotax amended return 2011 Musculoskeletal disorders. Turbotax amended return 2011 Obstetric and gynecological conditions. Turbotax amended return 2011 Pediatric conditions. Turbotax amended return 2011 Vision and hearing disorders. Turbotax amended return 2011 For more information on screening services, see Notice 2004-23, 2004-15 I. Turbotax amended return 2011 R. Turbotax amended return 2011 B. Turbotax amended return 2011 725 available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/irb/2004-15_IRB/ar10. Turbotax amended return 2011 html. Turbotax amended return 2011     The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2013. Turbotax amended return 2011      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,250 $12,500 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Turbotax amended return 2011 Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Turbotax amended return 2011    The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2014. Turbotax amended return 2011      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,350 $12,700 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Turbotax amended return 2011 Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Turbotax amended return 2011   Self-only HDHP coverage is an HDHP covering only an eligible individual. Turbotax amended return 2011 Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual). Turbotax amended return 2011 Example. Turbotax amended return 2011 An eligible individual and his dependent child are covered under an “employee plus one” HDHP offered by the individual's employer. Turbotax amended return 2011 This is family HDHP coverage. Turbotax amended return 2011 Family plans that do not meet the high deductible rules. Turbotax amended return 2011   There are some family plans that have deductibles for both the family as a whole and for individual family members. Turbotax amended return 2011 Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Turbotax amended return 2011 If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. Turbotax amended return 2011 Example. Turbotax amended return 2011 You have family health insurance coverage in 2013. Turbotax amended return 2011 The annual deductible for the family plan is $3,500. Turbotax amended return 2011 This plan also has an individual deductible of $1,500 for each family member. Turbotax amended return 2011 The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($2,500) for family coverage. Turbotax amended return 2011 Other health coverage. Turbotax amended return 2011   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Turbotax amended return 2011 However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Turbotax amended return 2011    You can have additional insurance that provides benefits only for the following items. Turbotax amended return 2011 Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property. Turbotax amended return 2011 A specific disease or illness. Turbotax amended return 2011 A fixed amount per day (or other period) of hospitalization. Turbotax amended return 2011   You can also have coverage (whether provided through insurance or otherwise) for the following items. Turbotax amended return 2011 Accidents. Turbotax amended return 2011 Disability. Turbotax amended return 2011 Dental care. Turbotax amended return 2011 Vision care. Turbotax amended return 2011 Long-term care. Turbotax amended return 2011    Plans in which substantially all of the coverage is through the items listed earlier are not HDHPs. Turbotax amended return 2011 For example, if your plan provides coverage substantially all of which is for a specific disease or illness, the plan is not an HDHP for purposes of establishing an HSA. Turbotax amended return 2011 Prescription drug plans. Turbotax amended return 2011   You can have a prescription drug plan, either as part of your HDHP or a separate plan (or rider), and qualify as an eligible individual if the plan does not provide benefits until the minimum annual deductible of the HDHP has been met. Turbotax amended return 2011 If you can receive benefits before that deductible is met, you are not an eligible individual. Turbotax amended return 2011 Other employee health plans. Turbotax amended return 2011   An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. Turbotax amended return 2011 Health FSAs and HRAs are discussed later. Turbotax amended return 2011   However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements. Turbotax amended return 2011 Limited-purpose health FSA or HRA. Turbotax amended return 2011 These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Turbotax amended return 2011 Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible. Turbotax amended return 2011 Suspended HRA. Turbotax amended return 2011 Before the beginning of an HRA coverage period, you can elect to suspend the HRA. Turbotax amended return 2011 The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. Turbotax amended return 2011 When the suspension period ends, you are no longer eligible to make contributions to an HSA. Turbotax amended return 2011 Post-deductible health FSA or HRA. Turbotax amended return 2011 These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. Turbotax amended return 2011 The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met. Turbotax amended return 2011 Retirement HRA. Turbotax amended return 2011 This arrangement pays or reimburses only those medical expenses incurred after retirement. Turbotax amended return 2011 After retirement you are no longer eligible to make contributions to an HSA. Turbotax amended return 2011 Health FSA – grace period. Turbotax amended return 2011   Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. Turbotax amended return 2011 See Flexible Spending Arrangements (FSAs) , later. Turbotax amended return 2011 Contributions to an HSA Any eligible individual can contribute to an HSA. Turbotax amended return 2011 For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. Turbotax amended return 2011 For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Turbotax amended return 2011 Family members or any other person may also make contributions on behalf of an eligible individual. Turbotax amended return 2011 Contributions to an HSA must be made in cash. Turbotax amended return 2011 Contributions of stock or property are not allowed. Turbotax amended return 2011 Limit on Contributions The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. Turbotax amended return 2011 For 2013, if you have self-only HDHP coverage, you can contribute up to $3,250. Turbotax amended return 2011 If you have family HDHP coverage, you can contribute up to $6,450. Turbotax amended return 2011 For 2014, if you have self-only HDHP coverage, you can contribute up to $3,300. Turbotax amended return 2011 If you have family HDHP coverage you can contribute up to $6,550. Turbotax amended return 2011 If you were, or were considered (under the last-month rule, discussed later), an eligible individual for the entire year and did not change your type of coverage, you can contribute the full amount based on your type of coverage. Turbotax amended return 2011 However, if you were not an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of: The limitation shown on the Line 3 Limitation Chart and Worksheetin the Instructions for Form 8889, Health Savings Accounts (HSAs), or The maximum annual HSA contribution based on your HDHP coverage (self-only or family) on the first day of the last month of your tax year. Turbotax amended return 2011 If you had family HDHP coverage on the first day of the last month of your tax year, your contribution limit for 2013 is $6,450 even if you changed coverage during the year. Turbotax amended return 2011 Last-month rule. Turbotax amended return 2011   Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered an eligible individual for the entire year. Turbotax amended return 2011 You are treated as having the same HDHP coverage for the entire year as you had on the first day of the last month. Turbotax amended return 2011 Testing period. Turbotax amended return 2011   If contributions were made to your HSA based on you being an eligible individual for the entire year under the last-month rule, you must remain an eligible individual during the testing period. Turbotax amended return 2011 For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month. Turbotax amended return 2011 For example, December 1, 2013, through December 31, 2014. Turbotax amended return 2011   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the total contributions made to your HSA that would not have been made except for the last-month rule. Turbotax amended return 2011 You include this amount in your income in the year in which you fail to be an eligible individual. Turbotax amended return 2011 This amount is also subject to a 10% additional tax. Turbotax amended return 2011 The income and additional tax are shown on Form 8889, Part III. Turbotax amended return 2011 Example 1. Turbotax amended return 2011 Chris, age 53, becomes an eligible individual on December 1, 2013. Turbotax amended return 2011 He has family HDHP coverage on that date. Turbotax amended return 2011 Under the last-month rule, he contributes $6,450 to his HSA. Turbotax amended return 2011 Chris fails to be an eligible individual in June 2014. Turbotax amended return 2011 Because Chris did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), he must include in his 2014 income the contributions made in 2013 that would not have been made except for the last-month rule. Turbotax amended return 2011 Chris uses the worksheet in the Form 8889 instructions to determine this amount. Turbotax amended return 2011 January -0- February -0- March -0- April -0- May -0- June -0- July -0- August -0- September -0- October -0- November -0- December $6,450. Turbotax amended return 2011 00 Total for all months $6,450. Turbotax amended return 2011 00 Limitation. Turbotax amended return 2011 Divide the total by 12 $537. Turbotax amended return 2011 50 Chris would include $5,912. Turbotax amended return 2011 50 ($6,450. Turbotax amended return 2011 00 – $537. Turbotax amended return 2011 50) in his gross income on his 2014 tax return. Turbotax amended return 2011 Also, a 10% additional tax applies to this amount. Turbotax amended return 2011 Example 2. Turbotax amended return 2011 Erika, age 39, has self-only HDHP coverage on January 1, 2013. Turbotax amended return 2011 Erika changes to family HDHP coverage on November 1, 2013. Turbotax amended return 2011 Because Erika has family HDHP coverage on December 1, 2013, she contributes $6,450 for 2013. Turbotax amended return 2011 Erika fails to be an eligible individual in March 2014. Turbotax amended return 2011 Because she did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), she must include in income the contribution made that would not have been made except for the last-month rule. Turbotax amended return 2011 Erika uses the worksheet in the Form 8889 instructions to determine this amount. Turbotax amended return 2011 January $3,250. Turbotax amended return 2011 00 February $3,250. Turbotax amended return 2011 00 March $3,250. Turbotax amended return 2011 00 April $3,250. Turbotax amended return 2011 00 May $3,250. Turbotax amended return 2011 00 June $3,250. Turbotax amended return 2011 00 July $3,250. Turbotax amended return 2011 00 August $3,250. Turbotax amended return 2011 00 September $3,250. Turbotax amended return 2011 00 October $3,250. Turbotax amended return 2011 00 November $6,450. Turbotax amended return 2011 00 December $6,450. Turbotax amended return 2011 00 Total for all months $45,400. Turbotax amended return 2011 00 Limitation. Turbotax amended return 2011 Divide the total by 12 $3,783. Turbotax amended return 2011 34 Erika would include $2,666. Turbotax amended return 2011 67 ($6,450 – $3,783. Turbotax amended return 2011 34) in her gross income on her 2014 tax return. Turbotax amended return 2011 Also, a 10% additional tax applies to this amount. Turbotax amended return 2011 Additional contribution. Turbotax amended return 2011   If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. Turbotax amended return 2011 For example, if you have self-only coverage, you can contribute up to $4,250 (the contribution limit for self-only coverage ($3,250) plus the additional contribution of $1,000). Turbotax amended return 2011 However, see Enrolled in Medicare , later. Turbotax amended return 2011 If you have more than one HSA in 2013, your total contributions to all the HSAs cannot be more than the limits discussed earlier. Turbotax amended return 2011 Reduction of contribution limit. Turbotax amended return 2011   You must reduce the amount that can be contributed (including any additional contribution) to your HSA by the amount of any contribution made to your Archer MSA (including employer contributions) for the year. Turbotax amended return 2011 A special rule applies to married people, discussed next, if each spouse has family coverage under an HDHP. Turbotax amended return 2011 Rules for married people. Turbotax amended return 2011   If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. Turbotax amended return 2011 If each spouse has family coverage under a separate plan, the contribution limit for 2013 is $6,450. Turbotax amended return 2011 You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses' Archer MSAs. Turbotax amended return 2011 After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division. Turbotax amended return 2011 The rules for married people apply only if both spouses are eligible individuals. Turbotax amended return 2011 If both spouses are 55 or older and not enrolled in Medicare, each spouse's contribution limit is increased by the additional contribution. Turbotax amended return 2011 If both spouses meet the age requirement, the total contributions under family coverage cannot be more than $8,450. Turbotax amended return 2011 Each spouse must make the additional contribution to his or her own HSA. Turbotax amended return 2011 Example. Turbotax amended return 2011 For 2013, Mr. Turbotax amended return 2011 Auburn and his wife are both eligible individuals. Turbotax amended return 2011 They each have family coverage under separate HDHPs. Turbotax amended return 2011 Mr. Turbotax amended return 2011 Auburn is 58 years old and Mrs. Turbotax amended return 2011 Auburn is 53. Turbotax amended return 2011 Mr. Turbotax amended return 2011 and Mrs. Turbotax amended return 2011 Auburn can split the family contribution limit ($6,450) equally or they can agree on a different division. Turbotax amended return 2011 If they split it equally, Mr. Turbotax amended return 2011 Auburn can contribute $4,225 to an HSA (one-half the maximum contribution for family coverage ($3,225) + $1,000 additional contribution) and Mrs. Turbotax amended return 2011 Auburn can contribute $3,225 to an HSA. Turbotax amended return 2011 Employer contributions. Turbotax amended return 2011   You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. Turbotax amended return 2011 This includes amounts contributed to your account by your employer through a cafeteria plan. Turbotax amended return 2011 Enrolled in Medicare. Turbotax amended return 2011   Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. Turbotax amended return 2011 Example. Turbotax amended return 2011 You turned age 65 in July 2013 and enrolled in Medicare. Turbotax amended return 2011 You had an HDHP with self-only coverage and are eligible for an additional contribution of $1,000. Turbotax amended return 2011 Your contribution limit is $2,125 ($4,250 × 6 ÷ 12). Turbotax amended return 2011 Qualified HSA funding distribution. Turbotax amended return 2011   A qualified HSA funding distribution may be made from your traditional IRA or Roth IRA to your HSA. Turbotax amended return 2011 This distribution cannot be made from an ongoing SEP IRA or SIMPLE IRA. Turbotax amended return 2011 For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer contribution is made for the plan year ending with or within your tax year in which the distribution would be made. Turbotax amended return 2011   The maximum qualified HSA funding distribution depends on the HDHP coverage (self-only or family) you have on the first day of the month in which the contribution is made and your age as of the end of the tax year. Turbotax amended return 2011 The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. Turbotax amended return 2011 The distribution is not included in your income, is not deductible, and reduces the amount that can be contributed to your HSA. Turbotax amended return 2011 The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made. Turbotax amended return 2011   You can make only one qualified HSA funding distribution during your lifetime. Turbotax amended return 2011 However, if you make a distribution during a month when you have self-only HDHP coverage, you can make another qualified HSA funding distribution in a later month in that tax year if you change to family HDHP coverage. Turbotax amended return 2011 The total qualified HSA funding distribution cannot be more than the contribution limit for family HDHP coverage plus any additional contribution to which you are entitled. Turbotax amended return 2011 Example. Turbotax amended return 2011 In 2013, you are an eligible individual, age 57, with self-only HDHP coverage. Turbotax amended return 2011 You can make a qualified HSA funding distribution of $4,250 ($3,250 plus $1,000 additional contribution). Turbotax amended return 2011 Funding distribution – testing period. Turbotax amended return 2011   You must remain an eligible individual during the testing period. Turbotax amended return 2011 For a qualified HSA funding distribution, the testing period begins with the month in which the qualified HSA funding distribution is contributed and ends on the last day of the 12th month following that month. Turbotax amended return 2011 For example, if a qualified HSA funding distribution is contributed to your HSA on August 10, 2013, your testing period begins in August 2013, and ends on August 31, 2014. Turbotax amended return 2011   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the qualified HSA funding distribution. Turbotax amended return 2011 You include this amount in income in the year in which you fail to be an eligible individual. Turbotax amended return 2011 This amount is also subject to a 10% additional tax. Turbotax amended return 2011 The income and the additional tax are shown on Form 8889, Part III. Turbotax amended return 2011   Each qualified HSA funding distribution allowed has its own testing period. Turbotax amended return 2011 For example, you are an eligible individual, age 45, with self-only HDHP coverage. Turbotax amended return 2011 On June 18, 2013, you make a qualified HSA funding distribution of $3,250. Turbotax amended return 2011 On July 27, 2013, you enroll in family HDHP coverage and on August 17, 2013, you make a qualified HSA funding distribution of $3,200. Turbotax amended return 2011 Your testing period for the first distribution begins in June 2013 and ends on June 30, 2014. Turbotax amended return 2011 Your testing period for the second distribution begins in August 2013 and ends on August 31, 2014. Turbotax amended return 2011   The testing period rule that applies under the last-month rule (discussed earlier) does not apply to amounts contributed to an HSA through a qualified HSA funding distribution. Turbotax amended return 2011 If you remain an eligible individual during the entire funding distribution testing period, then no amount of that distribution is included in income and will not be subject to the additional tax for failing to meet the last-month rule testing period. Turbotax amended return 2011 Rollovers A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit. Turbotax amended return 2011 Archer MSAs and other HSAs. Turbotax amended return 2011   You can roll over amounts from Archer MSAs and other HSAs into an HSA. Turbotax amended return 2011 You do not have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. Turbotax amended return 2011 Rollover contributions do not need to be in cash. Turbotax amended return 2011 Rollovers are not subject to the annual contribution limits. Turbotax amended return 2011   You must roll over the amount within 60 days after the date of receipt. Turbotax amended return 2011 You can make only one rollover contribution to an HSA during a 1-year period. Turbotax amended return 2011 Note. Turbotax amended return 2011 If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer is not considered a rollover. Turbotax amended return 2011 There is no limit on the number of these transfers. Turbotax amended return 2011 Do not include the amount transferred in income, deduct it as a contribution, or include it as a distribution on Form 8889. Turbotax amended return 2011 When To Contribute You can make contributions to your HSA for 2013 until April 15, 2014. Turbotax amended return 2011 If you fail to be an eligible individual during 2013, you can still make contributions, up until April 15, 2014, for the months you were an eligible individual. Turbotax amended return 2011 Your employer can make contributions to your HSA between January 1, 2014, and April 15, 2014, that are allocated to 2013. Turbotax amended return 2011 Your employer must notify you and the trustee of your HSA that the contribution is for 2013. Turbotax amended return 2011 The contribution will be reported on your 2014 Form W-2. Turbotax amended return 2011 Reporting Contributions on Your Return Contributions made by your employer are not included in your income. Turbotax amended return 2011 Contributions to an employee's account by an employer using the amount of an employee's salary reduction through a cafeteria plan are treated as employer contributions. Turbotax amended return 2011 Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as an adjustment to income. Turbotax amended return 2011 Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Turbotax amended return 2011 The contributions are treated as a distribution of money and are not included in the partner's gross income. Turbotax amended return 2011 Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are deductible by the partnership and includible in the partner's gross income. Turbotax amended return 2011 In both situations, the partner can deduct the contribution made to the partner's HSA. Turbotax amended return 2011 Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are deductible by the S corporation and includible in the shareholder-employee's gross income. Turbotax amended return 2011 The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Turbotax amended return 2011 Form 8889. Turbotax amended return 2011   Report all contributions to your HSA on Form 8889 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 You should include all contributions made for 2013, including those made by April 15, 2014, that are designated for 2013. Turbotax amended return 2011 Contributions made by your employer and qualified HSA funding distributions are also shown on the form. Turbotax amended return 2011   You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount contributed to your HSA during the year. Turbotax amended return 2011 Your employer's contributions also will be shown in box 12 of Form W-2, Wage and Tax Statement, with code W. Turbotax amended return 2011 Follow the instructions for Form 8889. Turbotax amended return 2011 Report your HSA deduction on Form 1040 or Form 1040NR. Turbotax amended return 2011 Excess contributions. Turbotax amended return 2011   You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Turbotax amended return 2011 Excess contributions are not deductible. Turbotax amended return 2011 Excess contributions made by your employer are included in your gross income. Turbotax amended return 2011 If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Turbotax amended return 2011   Generally, you must pay a 6% excise tax on excess contributions. Turbotax amended return 2011 See Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Turbotax amended return 2011 The excise tax applies to each tax year the excess contribution remains in the account. Turbotax amended return 2011   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Turbotax amended return 2011 You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made. Turbotax amended return 2011 You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. Turbotax amended return 2011 If you fail to remain an eligible individual during any of the testing periods, discussed earlier, the amount you have to include in income is not an excess contribution. Turbotax amended return 2011 If you withdraw any of those amounts, the amount is treated the same as any other distribution from an HSA, discussed later. Turbotax amended return 2011 Deducting an excess contribution in a later year. Turbotax amended return 2011   You may be able to deduct excess contributions for previous years that are still in your HSA. Turbotax amended return 2011 The excess contribution you can deduct for the current year is the lesser of the following two amounts. Turbotax amended return 2011 Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year. Turbotax amended return 2011 The total excess contributions in your HSA at the beginning of the year. Turbotax amended return 2011   Amounts contributed for the year include contributions by you, your employer, and any other person. Turbotax amended return 2011 They also include any qualified HSA funding distribution made to your HSA. Turbotax amended return 2011 Any excess contribution remaining at the end of a tax year is subject to the excise tax. Turbotax amended return 2011 See Form 5329. Turbotax amended return 2011 Distributions From an HSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. Turbotax amended return 2011 When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your HSA to send you a distribution from your HSA. Turbotax amended return 2011 You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. Turbotax amended return 2011 If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Turbotax amended return 2011 You do not have to make distributions from your HSA each year. Turbotax amended return 2011 If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Turbotax amended return 2011 Generally, a distribution is money you get from your health savings account. Turbotax amended return 2011 Your total distributions include amounts paid with a debit card that restricts payments to health care and amounts withdrawn from the HSA by other individuals that you have designated. Turbotax amended return 2011 The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Turbotax amended return 2011 Qualified medical expenses. Turbotax amended return 2011   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Turbotax amended return 2011 These are explained in Publication 502, Medical and Dental Expenses. Turbotax amended return 2011   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for HSA purposes. Turbotax amended return 2011 A medicine or drug will be a qualified medical expense for HSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Turbotax amended return 2011   For HSA purposes, expenses incurred before you establish your HSA are not qualified medical expenses. Turbotax amended return 2011 State law determines when an HSA is established. Turbotax amended return 2011 An HSA that is funded by amounts rolled over from an Archer MSA or another HSA is established on the date the prior account was established. Turbotax amended return 2011   If, under the last-month rule, you are considered to be an eligible individual for the entire year for determining the contribution amount, only those expenses incurred after you actually establish your HSA are qualified medical expenses. Turbotax amended return 2011   Qualified medical expenses are those incurred by the following persons. Turbotax amended return 2011 You and your spouse. Turbotax amended return 2011 All dependents you claim on your tax return. Turbotax amended return 2011 Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Turbotax amended return 2011    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. Turbotax amended return 2011 You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA. Turbotax amended return 2011 Insurance premiums. Turbotax amended return 2011   You cannot treat insurance premiums as qualified medical expenses unless the premiums are for: Long-term care insurance. Turbotax amended return 2011 Health care continuation coverage (such as coverage under COBRA). Turbotax amended return 2011 Health care coverage while receiving unemployment compensation under federal or state law. Turbotax amended return 2011 Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap). Turbotax amended return 2011   The premiums for long-term care insurance (item (1)) that you can treat as qualified medical expenses are subject to limits based on age and are adjusted annually. Turbotax amended return 2011 See Limit on long-term care premiums you can deduct in the instructions for Schedule A (Form 1040). Turbotax amended return 2011   Items (2) and (3) can be for your spouse or a dependent meeting the requirement for that type of coverage. Turbotax amended return 2011 For item (4), if you, the account beneficiary, are not 65 or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not qualified medical expenses. Turbotax amended return 2011 Health coverage tax credit. Turbotax amended return 2011   You cannot claim this credit for premiums that you pay with a tax-free distribution from your HSA. Turbotax amended return 2011 See Publication 502 for more information on this credit. Turbotax amended return 2011 Deemed distributions from HSAs. Turbotax amended return 2011   The following situations result in deemed taxable distributions from your HSA. Turbotax amended return 2011 You engaged in any transaction prohibited by section 4975 with respect to any of your HSAs, at any time in 2013. Turbotax amended return 2011 Your account ceases to be an HSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8889. Turbotax amended return 2011 You used any portion of any of your HSAs as security for a loan at any time in 2013. Turbotax amended return 2011 You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Turbotax amended return 2011   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the HSA, Lending of money between you and the HSA, Furnishing goods, services, or facilities between you and the HSA, and Transfer to or use by you, or for your benefit, of any assets of the HSA. Turbotax amended return 2011   Any deemed distribution will not be treated as used to pay qualified medical expenses. Turbotax amended return 2011 These distributions are included in your income and are subject to the additional 20% tax, discussed later. Turbotax amended return 2011 Recordkeeping. Turbotax amended return 2011 You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Turbotax amended return 2011 Do not send these records with your tax return. Turbotax amended return 2011 Keep them with your tax records. Turbotax amended return 2011 Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). Turbotax amended return 2011 If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. Turbotax amended return 2011 However, the distribution of an excess contribution taken out after the due date, including extensions, of your return is subject to tax even if used for qualified medical expenses. Turbotax amended return 2011 Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Turbotax amended return 2011 Report the amount on Form 8889 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 You may have to pay an additional 20% tax on your taxable distribution. Turbotax amended return 2011 HSA administration and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA. Turbotax amended return 2011 Additional tax. Turbotax amended return 2011   There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Turbotax amended return 2011 Figure the tax on Form 8889 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 Exceptions. Turbotax amended return 2011   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Turbotax amended return 2011 Balance in an HSA An HSA is generally exempt from tax. Turbotax amended return 2011 You are permitted to take a distribution from your HSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Turbotax amended return 2011 Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Turbotax amended return 2011 Earnings on amounts in an HSA are not included in your income while held in the HSA. Turbotax amended return 2011 Death of HSA Holder You should choose a beneficiary when you set up your HSA. Turbotax amended return 2011 What happens to that HSA when you die depends on whom you designate as the beneficiary. Turbotax amended return 2011 Spouse is the designated beneficiary. Turbotax amended return 2011   If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse's HSA after your death. Turbotax amended return 2011 Spouse is not the designated beneficiary. Turbotax amended return 2011   If your spouse is not the designated beneficiary of your HSA: The account stops being an HSA, and The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die. Turbotax amended return 2011 If your estate is the beneficiary, the value is included on your final income tax return. Turbotax amended return 2011 The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. Turbotax amended return 2011 Filing Form 8889 You must file Form 8889 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your HSA during the year. Turbotax amended return 2011 You must file the form even if only your employer or your spouse's employer made contributions to the HSA. Turbotax amended return 2011 If, during the tax year, you are the beneficiary of two or more HSAs or you are a beneficiary of an HSA and you have your own HSA, you must complete a separate Form 8889 for each HSA. Turbotax amended return 2011 Enter “statement” at the top of each Form 8889 and complete the form as instructed. Turbotax amended return 2011 Next, complete a controlling Form 8889 combining the amounts shown on each of the statement Forms 8889. Turbotax amended return 2011 Attach the statements to your tax return after the controlling Form 8889. Turbotax amended return 2011 Employer Participation This section contains the rules that employers must follow if they decide to make HSAs available to their employees. Turbotax amended return 2011 Unlike the previous discussions, “you” refers to the employer and not to the employee. Turbotax amended return 2011 Health plan. Turbotax amended return 2011   If you want your employees to be able to have an HSA, they must have an HDHP. Turbotax amended return 2011 You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Turbotax amended return 2011 Contributions. Turbotax amended return 2011   You can make contributions to your employees' HSAs. Turbotax amended return 2011 You deduct the contributions on your business income tax return for the year in which you make the contributions. Turbotax amended return 2011 If the contribution is allocated to the prior year, you still deduct it in the year in which you made the contribution. Turbotax amended return 2011   For more information on employer contributions, see Notice 2008-59, 2008-29 I. Turbotax amended return 2011 R. Turbotax amended return 2011 B. Turbotax amended return 2011 123, questions 23 through 27, available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/irb/2008-29_IRB/ar11. Turbotax amended return 2011 html. Turbotax amended return 2011 Comparable contributions. Turbotax amended return 2011   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' HSAs. Turbotax amended return 2011 Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. Turbotax amended return 2011 The comparability rules do not apply to contributions made through a cafeteria plan. Turbotax amended return 2011 Comparable participating employees. Turbotax amended return 2011   Comparable participating employees: Are covered by your HDHP and are eligible to establish an HSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (part-time, full-time, or former employees). Turbotax amended return 2011   To meet the comparability requirements for eligible employees who have not established an HSA by December 31 or have not notified you that they have an HSA, you must meet a notice requirement and a contribution requirement. Turbotax amended return 2011   You will meet the notice requirement if by January 15 of the following calendar year you provide a written notice to all such employees. Turbotax amended return 2011 The notice must state that each eligible employee who, by the last day of February, establishes an HSA and notifies you that they have established an HSA will receive a comparable contribution to the HSA for the prior year. Turbotax amended return 2011 For a sample of the notice, see Regulation 54. Turbotax amended return 2011 4980G-4 A-14(c). Turbotax amended return 2011 You will meet the contribution requirement for these employees if by April 15, 2014, you contribute comparable amounts plus reasonable interest to the employee's HSA for the prior year. Turbotax amended return 2011 Note. Turbotax amended return 2011 For purposes of making contributions to HSAs of non-highly compensated employees, highly compensated employees shall not be treated as comparable participating employees. Turbotax amended return 2011 Excise tax. Turbotax amended return 2011   If you made contributions to your employees' HSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Turbotax amended return 2011 Employment taxes. Turbotax amended return 2011   Amounts you contribute to your employees' HSAs are generally not subject to employment taxes. Turbotax amended return 2011 You must report the contributions in box 12 of the Form W-2 you file for each employee. Turbotax amended return 2011 This includes the amounts the employee elected to contribute through a cafeteria plan. Turbotax amended return 2011 Enter code “W” in box 12. Turbotax amended return 2011 Medical Savings Accounts (MSAs) Archer MSAs were created to help self-employed individuals and employees of certain small employers meet the medical care costs of the account holder, the account holder's spouse, or the account holder's dependent(s). Turbotax amended return 2011 After December 31, 2007, you cannot be treated as an eligible individual for Archer MSA purposes unless: You were an active participant for any tax year ending before January 1, 2008, or You became an active participant for a tax year ending after December 31, 2007, by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer. Turbotax amended return 2011 A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is eligible for Medicare. Turbotax amended return 2011 Archer MSAs An Archer MSA is a tax-exempt trust or custodial account that you set up with a U. Turbotax amended return 2011 S. Turbotax amended return 2011 financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses. Turbotax amended return 2011 What are the benefits of an Archer MSA?   You may enjoy several benefits from having an Archer MSA. Turbotax amended return 2011 You can claim a tax deduction for contributions you make even if you do not itemize your deductions on Form 1040 or Form 1040NR. Turbotax amended return 2011 The interest or other earnings on the assets in your Archer MSA are tax free. Turbotax amended return 2011 Distributions may be tax free if you pay qualified medical expenses. Turbotax amended return 2011 See Qualified medical expenses , later. Turbotax amended return 2011 The contributions remain in your Archer MSA from year to year until you use them. Turbotax amended return 2011 An Archer MSA is “portable” so it stays with you if you change employers or leave the work force. Turbotax amended return 2011 Qualifying for an Archer MSA To qualify for an Archer MSA, you must be either of the following. Turbotax amended return 2011 An employee (or the spouse of an employee) of a small employer (defined later) that maintains a self-only or family HDHP for you (or your spouse). Turbotax amended return 2011 A self-employed person (or the spouse of a self-employed person) who maintains a self-only or family HDHP. Turbotax amended return 2011 You can have no other health or Medicare coverage except what is permitted under Other health coverage , later. Turbotax amended return 2011 You must be an eligible individual on the first day of a given month to get an Archer MSA deduction for that month. Turbotax amended return 2011 If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an Archer MSA contribution. Turbotax amended return 2011 This is true even if the other person does not actually claim your exemption. Turbotax amended return 2011 Small employer. Turbotax amended return 2011   A small employer is generally an employer who had an average of 50 or fewer employees during either of the last 2 calendar years. Turbotax amended return 2011 The definition of small employer is modified for new employers and growing employers. Turbotax amended return 2011 Growing employer. Turbotax amended return 2011   A small employer may begin HDHPs and Archer MSAs for his or her employees and then grow beyond 50 employees. Turbotax amended return 2011 The employer will continue to meet the requirement for small employers if he or she: Had 50 or fewer employees when the Archer MSAs began, Made a contribution that was excludable or deductible as an Archer MSA for the last year he or she had 50 or fewer employees, and Had an average of 200 or fewer employees each year after 1996. Turbotax amended return 2011 Changing employers. Turbotax amended return 2011   If you change employers, your Archer MSA moves with you. Turbotax amended return 2011 However, you may not make additional contributions unless you are otherwise eligible. Turbotax amended return 2011 High deductible health plan (HDHP). Turbotax amended return 2011   To be eligible for an Archer MSA, you must be covered under an HDHP. Turbotax amended return 2011 An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the annual out-of-pocket medical expenses that you must pay for covered expenses. Turbotax amended return 2011 Limits. Turbotax amended return 2011   The following table shows the limits for annual deductibles and the maximum out-of-pocket expenses for HDHPs for 2013. Turbotax amended return 2011   Self-only coverage Family coverage Minimum annual deductible $2,150 $4,300 Maximum annual deductible $3,200 $6,450 Maximum annual out-of-pocket expenses $4,300 $7,850 Family plans that do not meet the high deductible rules. Turbotax amended return 2011   There are some family plans that have deductibles for both the family as a whole and for individual family members. Turbotax amended return 2011 Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Turbotax amended return 2011 If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. Turbotax amended return 2011 Example. Turbotax amended return 2011 You have family health insurance coverage in 2013. Turbotax amended return 2011 The annual deductible for the family plan is $5,500. Turbotax amended return 2011 This plan also has an individual deductible of $2,000 for each family member. Turbotax amended return 2011 The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($4,300) for family coverage. Turbotax amended return 2011 Other health coverage. Turbotax amended return 2011   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Turbotax amended return 2011 However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Turbotax amended return 2011 However, you can have additional insurance that provides benefits only for the following items. Turbotax amended return 2011 Liabilities incurred under workers' compensation laws, torts, or ownership or use of property. Turbotax amended return 2011 A specific disease or illness. Turbotax amended return 2011 A fixed amount per day (or other period) of hospitalization. Turbotax amended return 2011 You can also have coverage (whether provided through insurance or otherwise) for the following items. Turbotax amended return 2011 Accidents. Turbotax amended return 2011 Disability. Turbotax amended return 2011 Dental care. Turbotax amended return 2011 Vision care. Turbotax amended return 2011 Long-term care. Turbotax amended return 2011 Contributions to an MSA Contributions to an Archer MSA must be made in cash. Turbotax amended return 2011 You cannot contribute stock or other property to an Archer MSA. Turbotax amended return 2011 Who can contribute to my Archer MSA?   If you are an employee, your employer may make contributions to your Archer MSA. Turbotax amended return 2011 (You do not pay tax on these contributions. Turbotax amended return 2011 ) If your employer does not make contributions to your Archer MSA, or you are self-employed, you can make your own contributions to your Archer MSA. Turbotax amended return 2011 Both you and your employer cannot make contributions to your Archer MSA in the same year. Turbotax amended return 2011 You do not have to make contributions to your Archer MSA every year. Turbotax amended return 2011    If your spouse is covered by your HDHP and an excludable amount is contributed by your spouse's employer to an Archer MSA belonging to your spouse, you cannot make contributions to your own Archer MSA that year. Turbotax amended return 2011 Limits There are two limits on the amount you or your employer can contribute to your Archer MSA: The annual deductible limit. Turbotax amended return 2011 An income limit. Turbotax amended return 2011 Annual deductible limit. Turbotax amended return 2011   You (or your employer) can contribute up to 75% of the annual deductible of your HDHP (65% if you have a self-only plan) to your Archer MSA. Turbotax amended return 2011 You must have the HDHP all year to contribute the full amount. Turbotax amended return 2011 If you do not qualify to contribute the full amount for the year, determine your annual deductible limit by using the worksheet in the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Turbotax amended return 2011 Example 1. Turbotax amended return 2011 You have an HDHP for your family all year in 2013. Turbotax amended return 2011 The annual deductible is $5,000. Turbotax amended return 2011 You can contribute up to $3,750 ($5,000 × 75%) to your Archer MSA for the year. Turbotax amended return 2011 Example 2. Turbotax amended return 2011 You have an HDHP for your family for the entire months of July through December 2013 (6 months). Turbotax amended return 2011 The annual deductible is $5,000. Turbotax amended return 2011 You can contribute up to $1,875 ($5,000 × 75% ÷ 12 × 6) to your Archer MSA for the year. Turbotax amended return 2011 If you and your spouse each have a family plan, you are treated as having family coverage with the lower annual deductible of the two health plans. Turbotax amended return 2011 The contribution limit is split equally between you unless you agree on a different division. Turbotax amended return 2011 Income limit. Turbotax amended return 2011   You cannot contribute more than you earned for the year from the employer through whom you have your HDHP. Turbotax amended return 2011   If you are self-employed, you cannot contribute more than your net self-employment income. Turbotax amended return 2011 This is your income from self-employment minus expenses (including the deductible part of self-employment tax). Turbotax amended return 2011 Example 1. Turbotax amended return 2011 Noah Paul earned $25,000 from ABC Company in 2013. Turbotax amended return 2011 Through ABC, he had an HDHP for his family for the entire year. Turbotax amended return 2011 The annual deductible was $5,000. Turbotax amended return 2011 He can contribute up to $3,750 to his Archer MSA (75% × $5,000). Turbotax amended return 2011 He can contribute the full amount because he earned more than $3,750 at ABC. Turbotax amended return 2011 Example 2. Turbotax amended return 2011 Westley Lawrence is self-employed. Turbotax amended return 2011 He had an HDHP for his family for the entire year in 2013. Turbotax amended return 2011 The annual deductible was $5,000. Turbotax amended return 2011 Based on the annual deductible, the maximum contribution to his Archer MSA would have been $3,750 (75% × $5,000). Turbotax amended return 2011 However, after deducting his business expenses, Joe's net self-employment income is $2,500 for the year. Turbotax amended return 2011 Therefore, he is limited to a contribution of $2,500. Turbotax amended return 2011 Individuals enrolled in Medicare. Turbotax amended return 2011   Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. Turbotax amended return 2011 However, you may be eligible for a Medicare Advantage MSA, discussed later. Turbotax amended return 2011 When To Contribute You can make contributions to your Archer MSA for 2013 until April 15, 2014. Turbotax amended return 2011 Reporting Contributions on Your Return Report all contributions to your Archer MSA on Form 8853 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 You should include all contributions you, or your employer, made for 2013, including those made by April 15, 2014, that are designated for 2013. Turbotax amended return 2011 You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount you (or your employer) contributed during the year. Turbotax amended return 2011 Your employer's contributions should be shown in box 12 of Form W-2, Wage and Tax Statement, with code R. Turbotax amended return 2011 Follow the instructions for Form 8853 and complete the worksheet in the instructions. Turbotax amended return 2011 Report your Archer MSA deduction on Form 1040 or Form 1040NR. Turbotax amended return 2011 Excess contributions. Turbotax amended return 2011   You will have excess contributions if the contributions to your Archer MSA for the year are greater than the limits discussed earlier. Turbotax amended return 2011 Excess contributions are not deductible. Turbotax amended return 2011 Excess contributions made by your employer are included in your gross income. Turbotax amended return 2011 If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Turbotax amended return 2011   Generally, you must pay a 6% excise tax on excess contributions. Turbotax amended return 2011 See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Turbotax amended return 2011 The excise tax applies to each tax year the excess contribution remains in the account. Turbotax amended return 2011   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Turbotax amended return 2011 You withdraw the excess contributions by the due date, including extensions, of your tax return. Turbotax amended return 2011 You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. Turbotax amended return 2011 Deducting an excess contribution in a later year. Turbotax amended return 2011   You may be able to deduct excess contributions for previous years that are still in your Archer MSA. Turbotax amended return 2011 The excess contribution you can deduct in the current year is the lesser of the following two amounts. Turbotax amended return 2011 Your maximum Archer MSA contribution limit for the year minus any amounts contributed to your Archer MSA for the year. Turbotax amended return 2011 The total excess contributions in your Archer MSA at the beginning of the year. Turbotax amended return 2011   Any excess contributions remaining at the end of a tax year are subject to the excise tax. Turbotax amended return 2011 See Form 5329. Turbotax amended return 2011 Distributions From an MSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. Turbotax amended return 2011 When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your Archer MSA to send you a distribution from your Archer MSA. Turbotax amended return 2011 You can receive tax-free distributions from your Archer MSA to pay for qualified medical expenses (discussed later). Turbotax amended return 2011 If you receive distributions for other reasons, the amount will be subject to income tax and may be subject to an additional 20% tax as well. Turbotax amended return 2011 You do not have to make withdrawals from your Archer MSA each year. Turbotax amended return 2011 If you no longer qualify to make contributions, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Turbotax amended return 2011 A distribution is money you get from your Archer MSA. Turbotax amended return 2011 The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Turbotax amended return 2011 Qualified medical expenses. Turbotax amended return 2011   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Turbotax amended return 2011 These are explained in Publication 502. Turbotax amended return 2011   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for MSA purposes. Turbotax amended return 2011 A medicine or drug will be a qualified medical expense for MSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Turbotax amended return 2011   Qualified medical expenses are those incurred by the following persons. Turbotax amended return 2011 You and your spouse. Turbotax amended return 2011 All dependents you claim on your tax return. Turbotax amended return 2011 Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Turbotax amended return 2011    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. Turbotax amended return 2011    You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your Archer MSA. Turbotax amended return 2011 Special rules for insurance premiums. Turbotax amended return 2011   Generally, you cannot treat insurance premiums as qualified medical expenses for Archer MSAs. Turbotax amended return 2011 You can, however, treat premiums for long-term care coverage, health care coverage while you receive unemployment benefits, or health care continuation coverage required under any federal law as qualified medical expenses for Archer MSAs. Turbotax amended return 2011 Health coverage tax credit. Turbotax amended return 2011   You cannot claim this credit for premiums that you pay with a tax-free distribution from your Archer MSA. Turbotax amended return 2011 See Publication 502 for information on this credit. Turbotax amended return 2011 Deemed distributions from Archer MSAs. Turbotax amended return 2011   The following situations result in deemed taxable distributions from your Archer MSA. Turbotax amended return 2011 You engaged in any transaction prohibited by section 4975 with respect to any of your Archer MSAs at any time in 2013. Turbotax amended return 2011 Your account ceases to be an Archer MSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8853. Turbotax amended return 2011 You used any portion of any of your Archer MSAs as security for a loan at any time in 2013. Turbotax amended return 2011 You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Turbotax amended return 2011   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the Archer MSA, Lending of money between you and the Archer MSA, Furnishing goods, services, or facilities between you and the Archer MSA, and Transfer to or use by you, or for your benefit, of any assets of the Archer MSA. Turbotax amended return 2011   Any deemed distribution will not be treated as used to pay qualified medical expenses. Turbotax amended return 2011 These distributions are included in your income and are subject to the additional 20% tax, discussed later. Turbotax amended return 2011 Recordkeeping. Turbotax amended return 2011 You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Turbotax amended return 2011 Do not send these records with your tax return. Turbotax amended return 2011 Keep them with your tax records. Turbotax amended return 2011 Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). Turbotax amended return 2011 If you use a distribution from your Archer MSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8853. Turbotax amended return 2011 Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 If you do not use a distribution from your Archer MSA for qualified medical expenses, you must pay tax on the distribution. Turbotax amended return 2011 Report the amount on Form 8853 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 You may have to pay an additional 20% tax, discussed later, on your taxable distribution. Turbotax amended return 2011 If an amount (other than a rollover) is contributed to your Archer MSA this year (by you or your employer), you also must report and pay tax on a distribution you receive from your Archer MSA this year that is used to pay medical expenses of someone who is not covered by an HDHP, or is also covered by another health plan that is not an HDHP, at the time the expenses are incurred. Turbotax amended return 2011 Rollovers. Turbotax amended return 2011   Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA is not taxable if you complete the rollover within 60 days. Turbotax amended return 2011 An Archer MSA and an HSA can only receive one rollover contribution during a 1-year period. Turbotax amended return 2011 See the Form 8853 instructions for more information. Turbotax amended return 2011 Additional tax. Turbotax amended return 2011   There is a 20% additional tax on the part of your distributions not used for qualified medical expenses. Turbotax amended return 2011 Figure the tax on Form 8853 and file it with your Form 1040 or Form 1040NR. Turbotax amended return 2011 Report the additional tax in the total on Form 1040 or Form 1040NR. Turbotax amended return 2011 Exceptions. Turbotax amended return 2011   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Turbotax amended return 2011 Balance in an Archer MSA An Archer MSA is generally exempt from tax. Turbotax amended return 2011 You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Turbotax amended return 2011 Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Turbotax amended return 2011 Earnings on amounts in an Archer MSA are not included in your income while held in the Archer MSA. Turbotax amended return 2011 Death of the Archer MSA Holder You should choose a beneficiary when you set up your Archer MSA. Turbotax amended return 2011 What happens to that Archer MSA when you die depends on whom you designate as the beneficiary. Turbotax amended return 2011 Spouse is the designated beneficiary. Turbotax amended return 2011   If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death. Turbotax amended return 2011 Spouse is not the designated beneficiary. Turbotax amended return 2011   If your spouse is not the designated beneficiary of your Archer MSA: The account stops being an Archer MSA, and The fair market value of the Archer MSA becomes taxable to the beneficiary in the year in which you die. Turbotax amended return 2011   If your estate is the beneficiary, the fair market value of the Archer MSA will be included on your final income tax return. Turbotax amended return 2011 The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. Turbotax amended return 2011 Filing Form 8853 You must file Form 8853 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your Archer MSA during the year. Turbotax amended return 2011 You must file the form even if only your employer or your spouse's employer made contributions to the Archer MSA. Turbotax amended return 2011 If, during the tax year, you are the beneficiary of two or more Archer MSAs or you are a beneficiary of an Archer MSA and you have your own Archer MSA, you must complete a separate Form 8853 for each MSA. Turbotax amended return 2011 Enter “statement” at the top of each Form 8853 and complete the form as instructed. Turbotax amended return 2011 Next, complete a controlling Form 8853 combining the amounts shown on each of the statement Forms 8853. Turbotax amended return 2011 Attach the statements to your tax return after the controlling Form 8853. Turbotax amended return 2011 Employer Participation This section contains the rules that employers must follow if they decide to make Archer MSAs available to their employees. Turbotax amended return 2011 Unlike the previous discussions, “you” refers to the employer and not to the employee. Turbotax amended return 2011 Health plan. Turbotax amended return 2011   If you want your employees to be able to have an Archer MSA, you must make an HDHP available to them. Turbotax amended return 2011 You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Turbotax amended return 2011 Contributions. Turbotax amended return 2011   You can make contributions to your employees' Archer MSAs. Turbotax amended return 2011 You deduct the contributions on the “Employee benefit programs” line of your business income tax return for the year in which you make the contributions. Turbotax amended return 2011 If you are filing Form 1040, Schedule C, this is Part II, line 14. Turbotax amended return 2011 Comparable contributions. Turbotax amended return 2011   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' Archer MSAs. Turbotax amended return 2011 Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. Turbotax amended return 2011 Comparable participating employees. Turbotax amended return 2011   Comparable participating employees: Are covered by your HDHP and are eligible to establish an Archer MSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (either part-time or full-time). Turbotax amended return 2011 Excise tax. Turbotax amended return 2011   If you made contributions to your employees' Archer MSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Turbotax amended return 2011 Employment taxes. Turbotax amended return 2011   Amounts you contribute to your employees' Archer MSAs are generally not subject to employment taxes. Turbotax amended return 2011 You must report the contributions in box 12 of the Form W-2 you file for each employee. Turbotax amended return 2011 Enter code “R” in box 12. Turbotax amended return 2011 Medicare Advantage MSAs A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder. Turbotax amended return 2011 To be eligible for a Medicare Advantage MSA, you must be enrolled in Medicare and have a high deductible health plan (HDHP) that meets the Medicare guidelines. Turbotax amended return 2011 A Medicare Advantage MSA is a tax-exempt trust or custodial savings account that you set up with a financial institution (such as a bank or an insurance company) in which the Medicare program can deposit money for qualified medical expenses. Turbotax amended return 2011 The money in your account is not taxed if it is used for qualified medical expenses, and it may earn interest or dividends. Turbotax amended return 2011 An HDHP is a special health insurance policy that has a high deductible. Turbotax amended return 2011 You choose the policy you want to use as part of your Medicare Advantage MSA plan. Turbotax amended return 2011 However, the policy must be approved by the Medicare program. Turbotax amended return 2011 Medicare Advantage MSAs are administered through the federal Medicare program. Turbotax amended return 2011 You can get information by calling 1-800-Medicare (1-800-633-4227) or through the Internet at www. Turbotax amended return 2011 medicare. Turbotax amended return 2011 gov. Turbotax amended return 2011 Note. Turbotax amended return 2011 You must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your tax return if you have a Medicare Advantage MSA. Turbotax amended return 2011 Flexible Spending Arrangements (FSAs) A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses. Turbotax amended return 2011 FSAs are usually funded through voluntary salary reduction agreements with your employer. Turbotax amended return 2011 No employment or federal income taxes are deducted from your contribution. Turbotax amended return 2011 The employer may also contribute. Turbotax amended return 2011 Note. Turbotax amended return 2011 Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for FSAs on your income tax return. Turbotax amended return 2011 For information on the interaction between a health FSA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier. Turbotax amended return 2011 What are the benefits of an FSA?   You may enjoy several benefits from having an FSA. Turbotax amended return 2011 Contributions made by your employer can be excluded from your gross income. Turbotax amended return 2011 No employment or federal income taxes are deducted from the contributions. Turbotax amended return 2011 Withdrawals may be tax free if you pay qualified medical expenses. Turbotax amended return 2011 See Qualified medical expenses , later. Turbotax amended return 2011 You can withdraw funds from the account to pay qualified medical expenses even if you have not yet placed the funds in the account. Turbotax amended return 2011 Qualifying for an FSA Health FSAs are employer-established benefit plans. Turbotax amended return 2011 These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Turbotax amended return 2011 Employers have complete flexibility to offer various combinations of benefits in designing their plan. Turbotax amended return 2011 You do not have to be covered under any other health care plan to participate. Turbotax amended return 2011 Self-employed persons are not eligible for an FSA. Turbotax amended return 2011 Certain limitations may apply if you are a highly compensated participant or a key employee. Turbotax amended return 2011 Contributions to an FSA You contribute to your FSA by electing an amount to be voluntarily withheld from your pay by your employer. Turbotax amended return 2011 This is sometimes called a salary reduction agreement. Turbotax amended return 2011 The employer may also contribute to your FSA if specified in the plan. Turbotax amended return 2011 You do not pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. Turbotax amended return 2011 However, contributions made by your employer to provide coverage for long-term care insurance must be included in income. Turbotax amended return 2011 When To Contribute At the