Calfile hsa reddit. A California resident for the entire year. Calfile won't let me unless I have a prior tax… I'm using CalFile for the first time. Those earnings are still taxable by California. The premiums on the HSA are almost $1,500 less a year and the company will contribute $1000 to the HSA. After you become eligible for Medicare at age 65, the money is yours to spend however you like even for non-medical expenses, still with no taxes due on your deposits, investments, or withdrawals-and yes after an HSA balance exceeds $1000 you can invest the rest. And to use the above numbers, OP held 18. If you were enrolled in a company-sponsored healthcare choice and have an HSA make sure to get your 1099-SA from your HSA provider. For some background, I am a healthy 25 year old with a HDHP and HSA through HSA bank. Contributions to the HSA are tax-deductible whether they are made via payroll contribution or deposited via your checking account. You still get the same federal tax benefits as anyone else, but for California state income tax purposes, your HSA is treated like any normal taxable account. . So in short it's a way to pay for medical expenses with untaxed income. As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates. I filed on the 23rd, accepted the 24th, approved and sent the 25th, and then literally in my bank account today. So if you submit in calfile that means it's accepted. Follow the links to popular topics, online services If you don't need the money right now, and your HSA is in investments (rather than a savings account), just save your receipts/EoBs and reimburse yourself when you need the money down the line. How to use it correctly: Don't keep the money in it in cash. 385 * $1. and International, Federal, State, or local. Claiming a dependent exemption credit for a Sep 18, 2023 · Preparing tax returns on a California HSA is a pain in the ass. Find answers to your questions quickly and easily. So if you have, and pay for, a $1500 qualifying procedure this year and have already established an HSA. Basically, the more complicated your taxes are help you might need. Can I claim other credits using CalFile, or do I have to use a different e-file solution, or print out my tax forms? I tried to sign up for Calfile. 15 into the share count and making sure it matches the total payment) shares on the record date of 26-Mar and received $27. The copay plan has no HSA (which is incredible if you are young, healthy, and saving for retirement), and its OOP Max is painful. It feels wrong to dip into my HSA immediately after contributing to it. 547 minus 0. Contributions to an HSA are excludable from income and employment taxes if made by the employer. We would like to show you a description here but the site won’t allow us. Then any time from now until your death you can take $1500 out of your HSA tax Well the HSA isn't actually spendingit's savings. 385 (18. A. I am trying to file my state return through CalFile. I'm trying to file 2021 taxes retroactively. MyFTB gives individuals, business representatives, and tax professionals online access to tax account information and online services. ReadyReturn is the former tax preparation program initiated by the FTB as a pilot in 2005, [ 1 ] tax returns for the 2004 tax year, based on their 2003 tax data, went out to 51,850 taxpayers receiving a "pre-populated" [ 2 ] form based on The issue is, if you opt out, then the data in your credit report is yours alone. Claiming 10 or fewer dependents. Log in to your MyFTB account. gov. California expects you to report income on your tax return but all brokers that I am aware of do not break down the account income or give you a 1099. Sure, they are named "Health Savings Account", and you can take withdrawals for medical expenditures, but it's a retirement account and it is the best retirement account available. The IRS will then ask users if they want to file state tax returns and redirect them to CalFile, California's free tax filing tool for state tax returns. Filing an original 2023 return. My goal for 2022 is to end the year with at least $1,700 in the HSA, and then do one lump sum investment of at least $540 to add to my $2,460 ($8,200 x 30%) to get me to $3,000 invested in SWPPX in my HSA Brokerage Account. Payroll comes out pre-tax, whereas your self-contributions receive the favorable tax treatment when filing your tax return. Unsolved. All other changes, call us. I found that if I just add my HSA contributions to my Federal Adjusted Gross Income, I receive the exact same refund And the specific quote: "Because the HSA earnings are tax-free at the federal level, the HSA provider won’t send any 1099 for the earnings. I haven't done that CalFile | FTB. Is there a reason that having capital gains disqualifies you from using CalFile? Capital gains are included in your Federal AGI, which is what CalFile asks for. If you had a marketplace plan make sure to wait on form 1095-A Did you receive Unemployment (Yes it's taxed), well you'll need to get your 1099-G, go to your respective unemployment website for the state you You cannot use CalFile to correct your return. Money put in an HSA can be kept in the account indefinitely and can be used tax-free for health expenses at any time. Dec 4, 2018 · I live in California and was thinking how to do HSA taxes. There are 3 boxes I need to fill in. S. They charged me a bonus penalty to change nothing. A lot of free federal tax system require payment for California tax filing Jun 18, 2024 · MyFTB login. Some HSA's will give you a debit card you can use to directly make payments. Calculate premiums for HSA vs comparative plan (+ve variance for HSA) B. Considering an HSA typically goes along with a high deductible health insurance plan, which is usually elected by low-income individuals, this seems exactly like classism and discrimination. 76 (18. You can even use an HSA for retirement if you want. I've been maxing that HSA for 2017 & 2018 and my employer also contributes $1500/year into the HSA. The numbers they sent me which were supposed to reference their corrections matched exactly to the numbers I provided them in the CalFile. Places like TT and HR submit electronically and it goes through a process to check for fraud and other junk. Basically there are three scenarios I see here: You have almost zero medical expenses. Thanks for that, exactly what I needed! I'm just going to leave the whole account in an index fund for the next 30 years and don't plan on touching it so hopefully the taxes on it will remain relatively easy to calculate in the coming years (like you mentioned, dividend is easy enough to find). Calculate the deductible and oop maximum for each plan and calculate the delta (-ve variance for HSA). The Health Savings Account (HSA) is used in conjunction with a high deductible health plan. Roth (from old job) 401k Hsa Like, those institutions already have information digitally, do it's literally no extra effort to verify really. HSA contributions are pre-tax deductions, so you can use the HSA to your advantage (for tax purposes). I just discovered that the secondary insurance makes me ineligible, but somehow I never noticed this during last year's tax filing. First thing to check is whether this HSA is cash only or if it allows you to invest some (or all) of your savings. 42 votes, 26 comments. I'm willing to pay $20 to avoid any mistake on my tax paperwork). California and New Jersey are the only two states that do not recognize any special tax treatment for HSAs at the state level. An HSA is one of the most simplest thing i’ve ever encountered. 5% of your federal adjusted gross income. I'm using Turbo tax to file (please don't downvote me. Stay ahead of the curve with news and updates. Earnings on amounts in HSAs are not taxable. Best of luck and happy investing! I'm filing in California using CalFile, and I'm trying to claim a tax credit (other state tax credit, aka schedule S), but the only ones it has on there are Renters credit, Child/dependent care credit, EITC, YTC, and FYTC. If you max everything and have money left over then, yes, do an HSA before a taxable brokerage, even in CA. However, I have made HSA contributions — which is not technically supported by CalFile. Our goal is to help Redditors get answers to questions about Fidelity products and services, money movement, transfers, trading and more. At the very least, it is like an untaxed savings account; in a best case, it is essentially like having another Traditional IRA; once you hit retirement age, you can withdraw for non-medical expenses and you're taxed like the Traditional IRA. HSA and HCSA are two different animals. California Franchise Tax Board. i feel incredibly dumb - do i stick with calfile or play it safe with turbotax ? thank you ! Jun 5, 2019 · I’m an accountant and that literally makes no sense whatsoever. Claiming educator expenses on your federal return that do not exceed $300 ($600 if filing jointly) You are subject to the Individual Shared Responsibility Penalty. Contact Us. It is very restrictive. C. This is my first year filing directly with the state (CalFile), and it was so much better than with a tax preparer. "Interest earned from HSA", "Dividends earned from HSA", and "Net capital gain/loss from HSA". For FIRE purposes, HSA is substantially better. That requires submitting form 8889 with your return, and for most prep services that form is outside what counts as "a simple return" and disqualifies you from their free tier. And if they made the limit $200k, that seems reasonable. If you stay opt-ed in, then your personal credit report data is shared with intuits marketing arm, who can use this personal information any way they like. The HSA is a coping mechanism meant to cushion the blow of the high deductible. Aug 20, 2024 · The Saver's Credit is a tax credit for eligible contributions to your IRA, employer-sponsored retirement plan or Achieving a Better Life Experience (ABLE) account. I am interested in investing this money in an index fund and not touching it until I retire (assuming I stay healthy). 162; this can be checked by dividing 41. Qualify. Federal is pretty straightforward to me - your gross income minus certain "above the line" deductions such as healthcare premiums, HSA contributions, and It means they charged me a $15. I tried to do a comparison of my traditional plan vs. Reading u/PayDBoardMan's post on The mathematical benefits of Roth accounts inspired me to write this post. The family deductible is $3k, the OOP Max is $6k and the co-insurance is pretty much 10% across the board in-network. Not every dollar you contribute will be available to invest immediately - most HSA custodian requires a certain amount to be kept in the HSA checking (typically $1. The "all equities" approach being recommended to you is not because it is an HSA, but because of your time horizon (you are 24 and are planning on holding until retirement) - historically speaking, your time in the market over the next 40ish years allows you to absorb the risk and reap the benefits of equities along the way. Does not mean it is approved and ready to issue money, but it's accepted. But if you chose a low deductible/high premium plan, than they usually don't offer an HSA. Feb 25, 2020 · Within limits, contributions to an HSA made by, or on behalf of, an eligible individual are deductible by the individual in determining adjusted gross income (AGI). Do not qualify. If your HSA isn't in investments, either move it there now and follow the above, or just reimburse yourself now. Cancel your payment you scheduled in CalFile. Thank you! In the article, “The limit of the negative adjustment is your federal capital gains plus $3,000” is mentioned. CalFile is the current tax preparation program/service of the California Franchise Tax Board (FTB). The Calfile system requires filing a California tax return once in the last five years to do it for free. Your article is surely a big help. 72850) of capital gain distributions. Have your 2013 filing and W2 handy. You may receive your PIN in the mail. There are other benefits too, you can invest money in an HSA to get a better return on it. 39 (18. To cancel your payment, you must call our e-file help desk at least 2 business days before the payment date. Back to CalFile; Qualifications 2023; Qualifications 2022; Qualifications 2021; General; Qualify You have Health Savings Account (HSA Get help with your taxes from experts and fellow taxpayers. D. I reported them on line 1a, 5b, and 6b of the 1040. The IRS is experiencing significant and extended delays in processing - everything. There's no question your new plan is a lot worse than your old plan. CA taxes HSAs like a regular brokerage account so while you get the federal breaks, you have to maintain your own paperwork for investment gains since your brokerage will not issue a 1099 for your HSA. Use CalFile and all MyFTB services; To register, you must have filed a CA tax return for 1 of the last 5 years. I also have a W2 from a few days of substitute teaching and social security SSA-1099 which were included. The HSA here lets you save a lot of money long term if you treat it like an IRA. Even developing countries have online tax filing, but, need to use paper mail in a developed country 😞 You can withdraw HSA funds tax/penalty free any time you want. true. ca. Unless I'm missing something the tax calculated with CalFile vs. Last year, we tapped into our HSA to pay for the braces. It's my first time. Compare the tax benefits of each based on your marginal tax rate (+ve for HSA). Additionally, if you took an HSA distribution for a nonqualified medical expense and had to include that sum in hi everyone, i filled out my federal taxes on turbotax so it automatically estimated my return for state taxes (CA) - i decided to give calfile a shot and they estimated that my state return would actually be $80 higher than turbotax estimated. 41 penalty because they made a correction to the information I provided them on my CalFile. CalFile Qualifications 2017. HSA (Health Savings Account) can only be paired with a HDHP high deductible insurance plan, can be used for medical bills and future insurance premiums, and does not have a “use or lose” rule. As long as you have receipts for qualified expenses to justify the withdrawal. As soon as you have HSA or slightly higher income, you cannot use Calfile. You are required to report all your HSA contributions, distributions, and amount of qualified expenses; basically attesting that you followed all the rules of the HSA. You have some options to move HSA money around to a "better" provider if the one through your employer doesn't have all the features you want. 50970) of ordinary dividends and $13. filling out a 540 will be identical, so would any penalty for not following the rules be $0? Or maybe I'm missing something. I currently have about $600 in my account. 385 * $0. YES! Unless you get an employer match it’s the number one account for retirement savings(yes, even more than a Roth IRA). You'll never pay taxes on the money. Can’t do it this year tho since I switched to having a HSA. To help confirm you are who you say, they may for security ask a question about something, like adjusted gross income, or total taxes paid. Online. I love the HSA plans, and I support a family of 4. That's still not that wealthy, all things considered. r/California • K-12 schools across California are not required to have air conditioners — schools K through 12 across California are not required to have air conditioners or other cooling systems, and there is no regulated limit for how hot the indoor temperatures can get inside classrooms. This includes all interest and dividends paid inside the HSA. Even if you can't deduct them from your state taxes. Oct 12, 2018 · Health savings account distributions: If you had a tax-free HSA distribution for qualified medical expenses, you may be able to take a deduction for the portion of those expenses that exceed 7. My spouse has non-HDHP insurance also for family coverage. HSA (which I described in a previous post) can came up with the following result. I think the best thing to do is to go through the motions on CalFile and then compare the numbers for the 540 and see if it matches your tax software. File a return, make a payment, or check your refund. Don't post questions related to that here, please. You have moderate medical expenses. I'm a retired teacher so I have a 1099-R for my pension which I included while going through the CalFile process. and… E: seems that the difference in my case is just the HSA contributions For the life of me, I can't figure out what is considered "taxable income" for calculating income tax in California. Distributions from an HSA for qualified CalFile registration. Over the course of a few low income years I converted 100% of my Pre-Tax accounts into Roth accounts, in the 0% to 22% brackets with around an 18% effective tax rate of federal only taxes moving to a income-tax-free state. I also had a backdoor Roth last year and that shouldn’t be an issue. If you don't have things like investments, real estate, or anything else that isn't income from a job, then things like the 1040EZ for federal and CalFile for state taxes will probably be enough for your needs. HSA wins. My understanding is when you submit your return via calfile, it is accepted as soon as you get your confirmation. I have a relatively simple tax situation with a single W-2 income to report. I put the difference in premiums from the high premium plan compared to the high deduble/low premium HSA plan, into my HSA every month. Tied to the above, contributions to HSA are not automatically invested. I did notice the difference between the federal and state taxable account when going through my 216K subscribers in the tax community. You have to go into the HSA account statements and tally up all the earnings during the year. I can get dividends from my transaction history but I'm confused about other two. Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. My father has done this and has over 100k sitting in his HSA. I know, going through a company HSA seems like they're taking your money away from you, another reason to see if you can open one elsewhere. Even if the income is, for example, treasury interest and not taxable by the state, you have to report it and then designate it as Aug 2, 2020 · California doesn't recognize HSAs, so there is additional work to calculate state taxes each year due to dividends and capital gains distributions. Can you generate California Schedule W-2 from both CalFile and TurboTax, and verify that the information matches your original W-2 box by box? Do you have any California income adjustments? For example, if you itemized on your federal return and deducted state tax, or if you had an HSA (note that CalFile does not support HSA). Most people can create an account in real-time. Add the employer contribution for HSA (+ve for HSA). CalFile Help HSAs are retirement accounts. 5K-2K but depends on your custodian), and contributions above that can then be invested. uefnnrtlrrbspxoltewwkcjhyamcovhxqybqbzbcqwfywykgilzv
