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Free Taxes H And R Block

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Free Taxes H And R Block

Free taxes h and r block 13. Free taxes h and r block   Base de Bienes Table of Contents Introduction Useful Items - You may want to see: Base de CostoBienes Raíces Base AjustadaAumentos a la Base Disminuciones a la Base Base Distinta al CostoBienes Recibidos por Servicios Intercambios Sujetos a Impuestos Conversiones Involuntarias Intercambios no Sujetos a Impuestos Bienes Traspasados de un Cónyuge Bienes Recibidos como Donación Bienes Heredados Bienes de Uso Personal Cambiados a Uso Comercial o de Alquiler Acciones y Bonos Introduction Este capítulo explica cómo calcular la base de bienes. Free taxes h and r block Se divide en las siguientes secciones: Base de costo. Free taxes h and r block Base ajustada. Free taxes h and r block Base distinta al costo. Free taxes h and r block Su base es la cantidad de inversión en bienes para propósitos no sujetos a impuestos. Free taxes h and r block Use la base para calcular las pérdidas o ganancias provenientes de la venta, intercambio u otra enajenación de bienes. Free taxes h and r block Además, use la base para calcular las deducciones por depreciación, amortización, agotamiento y pérdidas fortuitas. Free taxes h and r block Si usa bienes para propósitos tanto comerciales como de inversión y personales, tiene que distribuir la base de acuerdo con el uso. Free taxes h and r block Sólo se puede depreciar la base asignada al uso comercial o de inversión de los bienes. Free taxes h and r block Su base original de los bienes se ajusta (aumenta o disminuye) según ciertos hechos. Free taxes h and r block Por ejemplo, si realiza mejoras a los bienes, aumente la base. Free taxes h and r block Si hace deducciones por depreciación o pérdidas fortuitas, o reclama ciertos créditos, reduzca la base. Free taxes h and r block Mantenga documentación precisa de todos los artículos que afecten la base de sus bienes. Free taxes h and r block Para más información sobre cómo mantener dicha documentación, consulte el capítulo 1 . Free taxes h and r block Useful Items - You may want to see: Publicación 15-B Employer's Tax Guide to Fringe Benefits (Guía tributaria sobre beneficios marginales para empleadores), en inglés 525 Taxable and Nontaxable Income (Ingresos sujetos a impuestos y no sujetos a impuestos), en inglés 535 Business Expenses (Gastos de negocio), en inglés 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés 551 Basis of Assets (Base de activos), en inglés 946 How To Depreciate Property (Cómo depreciar los bienes), en inglés Base de Costo La base de los bienes comprados normalmente es el costo de dichos bienes. Free taxes h and r block El costo es la cantidad que usted paga en efectivo, obligaciones de deuda, otros bienes o servicios. Free taxes h and r block Éste también puede incluir cantidades que paga por los siguientes artículos: Impuesto sobre ventas, Flete, Instalación y pruebas, Impuestos sobre artículos de uso y consumo, Honorarios legales y contables (cuando se tienen que capitalizar), Timbres de recaudación de impuestos, Costos de registro e Impuestos sobre bienes raíces (si usted los asume por el vendedor). Free taxes h and r block Además, la base de activos de bienes raíces y de negocios puede incluir otros artículos. Free taxes h and r block Préstamos con intereses bajos o sin intereses. Free taxes h and r block    Si compra bienes con un plan de pago a plazos con bajos intereses o sin intereses, la base de los bienes es el precio de compra establecido menos las cantidades consideradas intereses no establecidos. Free taxes h and r block Por lo general, se tienen intereses no establecidos si la tasa de interés es menor que la tasa federal correspondiente. Free taxes h and r block   Para obtener más información, consulte Unstated Interest and Original Issue Discount (OID) (Intereses no establecidos y descuento de la emisión original (OID, por sus siglas en inglés)) en la Publicación 537, en inglés. Free taxes h and r block Bienes Raíces Los bienes raíces, conocidos también como bienes inmuebles, consisten en tierra y, normalmente, todo lo que esté construido sobre esta tierra, lo que crezca en ella y todo lo instalado en ésta. Free taxes h and r block Si compra bienes raíces, algunos honorarios y otros gastos que usted pague son parte de la base de costo de los bienes. Free taxes h and r block Compra por suma global. Free taxes h and r block   Si compra edificios junto con la tierra por una suma global, asigne la base del costo entre la tierra y los edificios. Free taxes h and r block Asigne el costo según los valores justos de mercado (FMV, por sus siglas en inglés) respectivos de la tierra y los edificios al momento de la compra. Free taxes h and r block Calcule la base de cada uno de los activos multiplicando la suma global por una fracción. Free taxes h and r block El numerador es el valor justo de mercado de dicho activo y el denominador es el valor justo de mercado de los bienes en su totalidad al momento de la compra. Free taxes h and r block    Si no está seguro del valor justo de mercado de la tierra y los edificios, puede asignar la base de dichos bienes conforme a sus valores tasados para propósitos del impuesto sobre bienes raíces. Free taxes h and r block Valor justo de mercado (FMV). Free taxes h and r block   El valor justo de mercado (FMV, por sus siglas en inglés) es el precio por el cual los bienes cambian de propietario entre un comprador y un vendedor, cuando ninguno tiene la obligación de comprar o vender y cuando ambos tienen conocimiento razonable de todo hecho necesario. Free taxes h and r block Las ventas de bienes similares alrededor de la misma fecha pueden ser útiles para calcular el valor justo de mercado de los bienes. Free taxes h and r block Asunción de hipoteca. Free taxes h and r block   Si compra bienes y asume una hipoteca existente sobre los bienes (o si compra bienes sujetos a hipoteca), su base incluye la cantidad que paga por los bienes más la cantidad que se tiene que pagar sobre la hipoteca. Free taxes h and r block Cargos de liquidación. Free taxes h and r block   Su base incluye los cargos de liquidación y los costos de cierre que pagó por comprar los bienes. Free taxes h and r block Un cargo por comprar bienes es un costo que se tiene que pagar aun si compra los bienes en efectivo. Free taxes h and r block No incluya en su base cargos ni costos por obtener un préstamo sobre los bienes. Free taxes h and r block   Los siguientes son algunos de los cargos por liquidación o costos de cierre que puede incluir en la base de los bienes: Cargos por investigación del título de propiedad. Free taxes h and r block Cargos por conexión de servicios públicos. Free taxes h and r block Cargos por trámites legales (incluyendo cargos por la búsqueda del título y la preparación del contrato de compraventa y la escritura). Free taxes h and r block Costos de registro. Free taxes h and r block Cargos por estudios topográficos. Free taxes h and r block Impuestos de traspaso. Free taxes h and r block Seguro de título de la propiedad. Free taxes h and r block Cantidades que adeuda el vendedor y que usted acuerda pagar, como impuestos o intereses atrasados, costos de registro y cargos hipotecarios, cargos por mejoras o reparaciones y comisiones por ventas. Free taxes h and r block   Los costos de liquidación no incluyen cantidades puestas en depósito para el pago futuro de gastos como impuestos y seguro. Free taxes h and r block   Los siguientes son algunos de los cargos por liquidación y costos de cierre que no puede incluir en la base de los bienes: Primas de un seguro contra hechos fortuitos. Free taxes h and r block Alquiler por ocupación de la propiedad antes del cierre. Free taxes h and r block Cargos por servicios públicos u otros servicios relacionados con la ocupación de la propiedad antes del cierre. Free taxes h and r block Cargos relacionados con la obtención de un préstamo, tales como puntos (puntos de descuento, costos originarios del préstamo), primas de seguro hipotecario, cargos por asunción del préstamo, costo de un informe de crédito y cargos por una tasación que sea requisito del prestamista. Free taxes h and r block Cargos por refinanciamiento de una hipoteca. Free taxes h and r block Impuestos sobre bienes raíces. Free taxes h and r block   Si paga los impuestos sobre bienes raíces que el vendedor adeudaba sobre los bienes raíces que usted compró y el vendedor no se los reembolsa, considere estos impuestos como parte de su base. Free taxes h and r block No puede deducirlos como gasto. Free taxes h and r block    Si le reembolsa al vendedor los impuestos que éste pagó por usted, normalmente puede deducir la cantidad como gasto en el año de la compra. Free taxes h and r block No incluya esta cantidad en la base de bienes. Free taxes h and r block Si no se los reembolsa al vendedor, tiene que restar esos impuestos de su base. Free taxes h and r block Puntos. Free taxes h and r block   Si paga puntos para obtener un préstamo (incluyendo una hipoteca, una segunda hipoteca, una línea de crédito o un préstamo sobre el valor neto de la vivienda), no sume los puntos a la base de los bienes correspondientes. Free taxes h and r block Normalmente, los puntos se deducen a lo largo del plazo del préstamo. Free taxes h and r block Para más información sobre cómo deducir puntos, consulte el capítulo 23 . Free taxes h and r block Puntos de hipoteca de vivienda. Free taxes h and r block   Le pueden corresponder reglas especiales sobre los puntos que usted y el vendedor paguen cuando usted obtenga una hipoteca para comprar su vivienda principal. Free taxes h and r block Si se cumplen ciertos requisitos, puede deducir los puntos en su totalidad para el año en que se pagaron. Free taxes h and r block Reduzca la base de su vivienda por los puntos que pagó el vendedor. Free taxes h and r block Base Ajustada Antes de calcular las pérdidas o ganancias de una venta, intercambio u otra enajenación de bienes o de calcular la depreciación, agotamiento o amortización permisibles, por regla general, tiene que realizar ciertos ajustes (aumentos o disminuciones) a la base del costo o base distinta al costo (explicadas más adelante) de los bienes. Free taxes h and r block El resultado de estos ajustes a la base es la base ajustada. Free taxes h and r block Aumentos a la Base Aumente la base de los bienes por todos los artículos correctamente sumados a una cuenta de capital. Free taxes h and r block Ejemplos de artículos que aumentan la base se encuentran en la Tabla 13-1. Free taxes h and r block Algunos de estos artículos se explican a continuación. Free taxes h and r block Mejoras. Free taxes h and r block   Sume a su base de los bienes el costo de las mejoras que tengan vida útil de más de 1 año, si éstas aumentan el valor de los bienes, prolongan su vida útil o los adaptan para un uso diferente. Free taxes h and r block Por ejemplo, las mejoras incluyen la instalación de una sala de recreación en un sótano no terminado, la construcción de un baño o dormitorio adicional, la colocación de una cerca, la instalación de nueva plomería o cableado, la instalación de un nuevo tejado o la pavimentación de la entrada de autos. Free taxes h and r block Gravámenes por mejoras locales. Free taxes h and r block   Sume a la base de los bienes los cargos por mejoras como calles y aceras o banquetas, si éstas aumentan el valor de los bienes. Free taxes h and r block No deduzca dichos cargos como impuestos. Free taxes h and r block Sin embargo, puede deducir como impuestos los cargos por mantenimiento, reparaciones o cargos de intereses relacionados con las mejoras. Free taxes h and r block Ejemplo. Free taxes h and r block El ayuntamiento transforma la calle ubicada frente a su tienda en un paseo peatonal y le tasa un gravamen a la propiedad de usted y a las de otros propietarios afectados por el costo del cambio de la calle. Free taxes h and r block Sume dicho cargo a la base de sus bienes. Free taxes h and r block En este ejemplo, el cargo es un activo depreciable. Free taxes h and r block Disminuciones a la Base Reduzca la base de bienes por todo lo que represente un rendimiento de capital en el período durante el cual tuvo los bienes. Free taxes h and r block Los ejemplos de artículos que reducen la base se encuentran en la Tabla 13-1. Free taxes h and r block Algunos de estos artículos se explican a continuación. Free taxes h and r block Tabla 13-1. Free taxes h and r block Ejemplos de Ajustes a la Base Aumentos a la Base Disminuciones a la Base • Mejoras de capital: • Exclusión en los ingresos de subsidios  por sistemas de ahorro de energía   Ampliación de la vivienda     Instalación de un tejado completo     Pavimentación de la entrada de autos • Deducciones por pérdidas fortuitas o  por robo y reembolsos de seguros   Instalación de aire acondicionado central     Cambio del cableado en la vivienda         • Gravámenes por mejoras locales: • Ganancia aplazada de la venta de una  vivienda   Conexiones de agua     Extensión de cables de servicios públicos   hasta la propiedad • Crédito por vehículos con motor  alternativo (Formulario 8910)   Banquetas o aceras     Calles       • Crédito por bienes para recargar  vehículos de combustible alternativo   (Formulario 8911)             • Pérdidas por hechos fortuitos:  Restauración de bienes dañados   • Créditos por energía eficaz  residencial (Formulario 5695)         • Depreciación y deducción conforme a  la sección 179       • Honorarios legales: • Distribuciones de sociedades  anónimas no sujetos a impuestos   Costo de defender y perfeccionar un título   de propiedad     Honorarios por obtener la reducción de un   gravamen del ayuntamiento • Determinadas deudas canceladas  excluidas de los ingresos       • Costos de zonificación • Servidumbres (derechos de acceso  a la propiedad)         • Beneficios tributarios por adopción Pérdidas por hecho fortuito y robo. Free taxes h and r block   Si tiene pérdidas por hecho fortuito o por robo, reste de la base de los bienes el dinero del seguro u otros reembolsos y las pérdidas deducibles no cubiertas por el seguro. Free taxes h and r block    Tiene que aumentar la base de los bienes por la cantidad que gaste en reparaciones que restauren los bienes a su condición previa al hecho fortuito. Free taxes h and r block   Para obtener más información acerca de las pérdidas fortuitas y por robo, consulte el capítulo 25 . Free taxes h and r block Depreciación y deducción conforme a la sección 179. Free taxes h and r block   Reste de la base de la propiedad comercial calificada las deducciones que haya declarado conforme a la sección 179 y la depreciación que haya deducido, o pudo haber deducido (incluyendo todo descuento especial por depreciación), en la declaración de impuestos según el método de depreciación que seleccionó. Free taxes h and r block   Para obtener más información acerca de la depreciación y la deducción conforme a la sección 179, consulte la Publicación 946 y las Instrucciones del Formulario 4562, ambas en inglés. Free taxes h and r block Ejemplo. Free taxes h and r block Usted fue propietario de un dúplex usado como vivienda de alquiler que le costó $40,000, de los cuales $35,000 fueron asignados al edificio y $5,000 al terreno. Free taxes h and r block Hizo una ampliación al dúplex que costó $10,000. Free taxes h and r block En febrero del año pasado, el dúplex sufrió daños por un incendio. Free taxes h and r block Hasta ese momento, usted había descontado una depreciación de $23,000. Free taxes h and r block Vendió algunos materiales rescatados del siniestro por $1,300 y cobró $19,700 de la compañía de seguros. Free taxes h and r block Dedujo una pérdida fortuita de $1,000 en su declaración de impuestos sobre el ingreso del año pasado. Free taxes h and r block Gastó $19,000 del dinero del seguro para la restauración del dúplex, que se completó este año. Free taxes h and r block Tiene que usar la base ajustada del dúplex después de la restauración para determinar la depreciación para el resto del período de recuperación de la propiedad. Free taxes h and r block Calcule la base ajustada del dúplex de la siguiente manera: Costo original del dúplex $35,000 Ampliación hecha al dúplex 10,000 Costo total del dúplex $45,000 Menos: Depreciación 23,000 Base ajustada antes del hecho fortuito $22,000 Menos: Dinero del seguro $19,700     Pérdida fortuita deducida 1,000     Materiales rescatados 1,300 22,000 Base ajustada después del hecho fortuito $-0- Sume: Costo de restauración del dúplex 19,000 Base ajustada después de la restauración $19,000 Nota: La base del terreno es el costo original de $5,000. Free taxes h and r block Servidumbres (derechos de acceso a la propiedad). Free taxes h and r block   La cantidad recibida por otorgar una servidumbre normalmente se considera ganancia de la venta de una participación en bienes raíces. Free taxes h and r block Esto reduce la base de la parte afectada de los bienes. Free taxes h and r block Si la cantidad recibida es mayor que la base de la parte de la propiedad afectada por la servidumbre, reduzca su base de esa parte a cero y considere el remanente como una ganancia reconocida. Free taxes h and r block   Si la ganancia es sobre bienes de capital, consulte el capítulo 16 para obtener más información acerca de cómo declararla. Free taxes h and r block Si la ganancia es sobre bienes usados en una ocupación o negocio, consulte la Publicación 544, en inglés, para obtener información acerca de cómo declararla. Free taxes h and r block Exclusión de subsidios por sistemas de ahorro de energía. Free taxes h and r block   Puede excluir del ingreso bruto todo subsidio recibido de una compañía de servicios públicos por la compra o instalación de un sistema de ahorro de energía para una vivienda. Free taxes h and r block De la base de los bienes para los cuales recibió el subsidio, reste la cantidad excluida. Free taxes h and r block Para obtener más información acerca de este subsidio, consulte el capítulo 12 . Free taxes h and r block Ganancia aplazada de la venta de una vivienda. Free taxes h and r block    Si aplazó la ganancia de la venta de su vivienda principal según las reglas en vigencia antes del 7 de mayo de 1997, tiene que restar la ganancia aplazada de la base de la vivienda que adquirió como reposición. Free taxes h and r block Para obtener más información acerca de las reglas sobre la venta de una vivienda, vea el capítulo 15 . Free taxes h and r block Base Distinta al Costo En muchas ocasiones, no puede usar el costo como base. Free taxes h and r block En estos casos, se puede usar el valor justo de mercado o la base ajustada de los bienes. Free taxes h and r block El valor justo de mercado y la base ajustada se explican en secciones anteriores. Free taxes h and r block Bienes Recibidos por Servicios Si recibe bienes por sus servicios, incluya el valor justo de mercado de dichos bienes en los ingresos. Free taxes h and r block La cantidad que incluye en los ingresos es la base. Free taxes h and r block Si los servicios se prestaron por un precio acordado con anticipación, éste se aceptará como el valor justo de mercado de los bienes si no existen pruebas de lo contrario. Free taxes h and r block Bienes restringidos. Free taxes h and r block   Si recibe bienes por sus servicios y los bienes están sujetos a ciertas restricciones, la base de los bienes es el valor justo de mercado en el momento en que estén sustancialmente establecidos sus derechos a dichos bienes. Free taxes h and r block Sin embargo, esta regla no corresponde si elige incluir en los ingresos el valor justo de mercado de los bienes en el momento en que se le traspasen dichos bienes, menos la cantidad que pagó por éstos. Free taxes h and r block Su derecho sobre esos bienes están sustancialmente establecidos cuando dichos bienes se pueden traspasar o cuando no están sujetos a un riesgo importante de pérdida (es decir, usted tiene pocas probabilidades de perderlos). Free taxes h and r block Para obtener más información, consulte Restricted Property (Bienes restringidos) en la Publicación 525, en inglés. Free taxes h and r block Compra por valor inferior. Free taxes h and r block   Una compra por valor inferior es una compra de un artículo por un valor menor que su valor justo de mercado. Free taxes h and r block Si, como compensación por servicios, compra productos u otros bienes por un valor menor al valor justo de mercado, incluya en su ingreso la diferencia entre el precio de compra y el valor justo de mercado de los bienes. Free taxes h and r block La base de los bienes es el valor justo de mercado (precio de compra más la cantidad que se incluye en los ingresos). Free taxes h and r block   Si la diferencia entre el precio de compra y el valor justo de mercado es un descuento al empleado, no incluya la diferencia en los ingresos. Free taxes h and r block Sin embargo, la base de los bienes sigue siendo el valor justo de mercado. Free taxes h and r block Consulte Employee Discounts (Descuentos del empleado) en la Publicación 15-B, en inglés. Free taxes h and r block Intercambios Sujetos a Impuestos Un intercambio sujeto a impuestos es aquel intercambio en el que la ganancia está sujeta a impuestos o la pérdida es deducible. Free taxes h and r block Una ganancia sujeta a impuestos o pérdida deducible también se conoce como ganancia o pérdida reconocida. Free taxes h and r block Si recibe bienes como intercambio por otros bienes a través de un intercambio sujeto a impuestos, normalmente la base de los bienes que recibe es el valor justo de mercado al momento del intercambio. Free taxes h and r block Conversiones Involuntarias Si recibe bienes de reposición como resultado de una conversión involuntaria, tal como un hecho fortuito, robo o expropiación forzosa, calcule la base de los bienes de reposición usando la base de los bienes convertidos. Free taxes h and r block Bienes similares o afines. Free taxes h and r block   Si recibe bienes de reposición similares o afines en servicio o uso a los bienes convertidos, la base de los bienes de reposición es la misma que la base de los bienes convertidos en la fecha de la conversión, con los siguientes ajustes: Reduzca la base por lo siguiente: Toda pérdida que reconozca en la conversión involuntaria. Free taxes h and r block Todo dinero que reciba y que no gaste en bienes afines. Free taxes h and r block Aumente la base por lo siguiente: Toda ganancia que reconozca en la conversión involuntaria. Free taxes h and r block Todo costo de adquisición de los bienes de reposición. Free taxes h and r block Dinero o bienes no similares ni afines. Free taxes h and r block    Si recibe dinero o bienes no similares o no afines en servicio o uso a los bienes convertidos y compra bienes de reposición similares o afines en servicio o uso a los bienes convertidos, la base de los bienes de reposición es el costo menos la ganancia no reconocida en la conversión. Free taxes h and r block Ejemplo. Free taxes h and r block El estado expropió sus bienes. Free taxes h and r block La base ajustada de los bienes era $26,000 y el estado le pagó $31,000 por éstos. Free taxes h and r block Usted obtuvo una ganancia de $5,000 ($31,000 − $26,000). Free taxes h and r block Por $29,000 compró bienes de reposición similares en uso a los bienes convertidos. Free taxes h and r block Obtiene una ganancia de $2,000 ($31,000 − $29,000), la parte no gastada del pago que recibió del estado. Free taxes h and r block Su ganancia no reconocida es $3,000, la diferencia entre los $5,000 de ganancia obtenida y los $2,000 de ganancia reconocida. Free taxes h and r block La base de los bienes de reposición se calcula de la siguiente manera: Costo de los bienes de reposición $29,000 Menos: Ganancia no reconocida 3,000 Base de los bienes de reposición $26,000 Cómo distribuir la base. Free taxes h and r block   Si compra más de una propiedad de reposición, distribuya la base entre los bienes de acuerdo con los costos respectivos. Free taxes h and r block Base de depreciación. Free taxes h and r block   Hay reglas especiales para determinar y depreciar la base de los bienes MACRS (Sistema modificado de recuperación acelerada de costos) adquiridos en una conversión involuntaria. Free taxes h and r block Para información, vea What Is the Basis of Your Depreciable Property? (¿Cuál es la base de los bienes depreciables?), en el capítulo 1 de la Publicación 946, en inglés. Free taxes h and r block Intercambios no Sujetos a Impuestos Un intercambio no sujeto a impuestos es aquel intercambio en el que no se gravan las ganancias y no se pueden deducir las pérdidas. Free taxes h and r block Si recibe bienes por intercambio no sujetos a impuestos, normalmente la base es la misma que la base de los bienes que traspasó. Free taxes h and r block Consulte Canjes no Sujetos a Impuestos en el capítulo 14. Free taxes h and r block Intercambios de Bienes del Mismo Tipo El intercambio de bienes del mismo tipo es la clase más común de intercambio no sujeto a impuestos. Free taxes h and r block Para considerarse intercambio de bienes del mismo tipo, tanto los bienes canjeados como los bienes recibidos tienen que ser los siguientes: Bienes calificados. Free taxes h and r block Bienes del mismo tipo. Free taxes h and r block La base de los bienes que recibe normalmente es la misma que la base ajustada de los bienes que traspase. Free taxes h and r block Si canjea los bienes en un intercambio de bienes del mismo tipo y también paga dinero, la base de los bienes recibidos es la base ajustada de los bienes que entregó más el dinero que pagó. Free taxes h and r block Bienes calificados. Free taxes h and r block   En un intercambio de bienes del mismo tipo, tiene que mantener para inversión o uso productivo en su ocupación o negocio tanto los bienes que traspase como los bienes que reciba. Free taxes h and r block Bienes del mismo tipo. Free taxes h and r block   Tiene que haber un intercambio de bienes del mismo tipo. Free taxes h and r block Los bienes del mismo tipo son bienes de la misma naturaleza o carácter, aun si son de grado o calidad diferente. Free taxes h and r block El intercambio de bienes raíces por bienes raíces, o de bienes muebles por bienes muebles similares, es un intercambio de bienes del mismo tipo. Free taxes h and r block Ejemplo. Free taxes h and r block Usted canjea un camión viejo que usó en su negocio con una base ajustada de $1,700 por un camión nuevo que tiene un costo de $6,800. Free taxes h and r block El concesionario le hace un descuento de $2,000 por el camión viejo y usted paga $4,800. Free taxes h and r block Esto es un ejemplo de un intercambio de bienes del mismo tipo. Free taxes h and r block La base del camión nuevo es $6,500 (la base ajustada del camión viejo, $1,700, más la cantidad que pagó, $4,800). Free taxes h and r block Si vende el camión viejo a un tercero por $2,000, en lugar de hacer un canje y luego comprar un camión nuevo a un concesionario, usted tiene una ganancia sujeta a impuestos de $300 sobre la venta (el precio de venta de $2,000 menos la base ajustada de $1,700). Free taxes h and r block La base del camión nuevo es el precio que paga al concesionario. Free taxes h and r block Intercambios parcialmente no sujetos a impuestos. Free taxes h and r block   Un intercambio parcialmente no sujeto a impuestos es un intercambio en el que usted recibe bienes que no son del mismo tipo o dinero, además de bienes del mismo tipo. Free taxes h and r block La base de los bienes que recibe es igual a la base ajustada total de los bienes que traspasó, con los siguientes ajustes: Reduzca la base por lo siguiente: Todo el dinero que reciba. Free taxes h and r block Todas las pérdidas que reconozca en el intercambio. Free taxes h and r block Aumente la base por lo siguiente: Todos los costos adicionales en los que incurra. Free taxes h and r block Todas las ganancias que reconozca en el intercambio. Free taxes h and r block Si la otra parte implicada en el intercambio asume las deudas que le pertenecen a usted, trate la asunción de deuda como dinero que usted recibió en el intercambio. Free taxes h and r block Asignación de la base. Free taxes h and r block   Si recibe tanto bienes del mismo tipo como bienes que no son del mismo tipo en el intercambio, asigne la base primero a los bienes que no sean del mismo tipo, excepto dinero, hasta su valor justo de mercado en la fecha del intercambio. Free taxes h and r block El resto es la base de los bienes del mismo tipo. Free taxes h and r block Información adicional. Free taxes h and r block   Para obtener más información, consulte Like-Kind Exchanges (Intercambios de bienes del mismo tipo) en el capítulo 1 de la Publicación 544, en inglés. Free taxes h and r block Base de depreciación. Free taxes h and r block   Hay reglas especiales para determinar y depreciar la base de los bienes MACRS adquiridos en un intercambio de bienes del mismo tipo. Free taxes h and r block Para información, vea What Is the Basis of Your Depreciable Property? (¿Cuál es la base de los bienes depreciables?), en el capítulo 1 de la Publicación 946, en inglés. Free taxes h and r block Bienes Traspasados de un Cónyuge La base de los bienes traspasados a usted o traspasados en fideicomiso para su beneficio por su cónyuge es la misma base que la base ajustada de su cónyuge. Free taxes h and r block Se aplica la misma regla a un traspaso efectuado por su ex cónyuge en relación con su divorcio. Free taxes h and r block Sin embargo, para bienes traspasados en fideicomiso, ajuste la base según las ganancias reconocidas por su cónyuge o ex cónyuge si las obligaciones asumidas, más las obligaciones a las que están sujetos los bienes, son mayores que la base ajustada de los bienes traspasados. Free taxes h and r block Si los bienes que le son traspasados son bonos de ahorros estadounidenses de la serie E, serie EE o serie I, el cesionario tiene que incluir en el ingreso los intereses devengados a la fecha del traspaso. Free taxes h and r block Su base en los bonos, inmediatamente después del traspaso, es igual a la base del cesionario más el ingreso de intereses que se pueda incluir en el ingreso del cesionario. Free taxes h and r block Para obtener más información acerca de estos bonos, consulte el capítulo 7 . Free taxes h and r block Al momento del traspaso, el cesionario tiene que entregarle la documentación necesaria para determinar la base ajustada y el período de tenencia de los bienes a partir de la fecha de traspaso. Free taxes h and r block Para obtener más información acerca del traspaso de bienes de un cónyuge, consulte el capítulo 14 . Free taxes h and r block Bienes Recibidos como Donación Para calcular la base de una propiedad recibida como donación, tiene que conocer la base ajustada del donante justo antes de la donación, el valor justo de mercado de esta propiedad al momento en que se dona y los impuestos sobre donaciones pagados por dicha propiedad. Free taxes h and r block Valor justo de mercado menor que la base ajustada del donante. Free taxes h and r block   Si el valor justo de mercado de los bienes al momento de la donación es menor que la base ajustada del donante, la base depende de si usted tiene ganancias o pérdidas cuando enajene los bienes. Free taxes h and r block Su base para calcular ganancias es la misma que la base ajustada del donante más o menos los ajustes requeridos a la base mientras usted tenía los bienes. Free taxes h and r block Su base para calcular pérdidas es el valor justo de mercado cuando recibió la donación más o menos los ajustes requeridos a la base mientras usted tenía los bienes. Free taxes h and r block Vea Base Ajustada , anteriormente. Free taxes h and r block Ejemplo. Free taxes h and r block Usted recibió un acre de terreno como donación. Free taxes h and r block Al momento de la donación, el terreno tenía un valor justo de mercado de $8,000. Free taxes h and r block La base ajustada del donante era $10,000. Free taxes h and r block Después de recibir los bienes, no sucedió nada que aumentara ni disminuyera la base de los mismos. Free taxes h and r block Si posteriormente usted vende los bienes por $12,000, tendrá una ganancia de $2,000 porque tiene que usar la base ajustada del donante al momento de la donación ($10,000) como base para calcular la ganancia. Free taxes h and r block Si vende los bienes por $7,000, tendrá una pérdida de $1,000 porque tiene que usar el valor justo de mercado al momento de la donación ($8,000) como base para calcular la pérdida. Free taxes h and r block Si el precio de venta está entre $8,000 y $10,000, no tiene ganancias ni pérdidas. Free taxes h and r block Bienes comerciales. Free taxes h and r block   Si mantiene la donación como bienes comerciales, su base para calcular deducciones por depreciación, agotamiento o amortización es la misma que la base del donante más o menos los ajustes requeridos a la base mientras usted tiene los bienes. Free taxes h and r block Valor justo de mercado igual o mayor que la base ajustada del donante. Free taxes h and r block   Si el valor justo de mercado de los bienes es igual o mayor que la base ajustada del donante, la base es la base ajustada del donante al momento en que usted recibió la donación. Free taxes h and r block Aumente la base por la totalidad o parte de los impuestos sobre donaciones pagados, según la fecha de donación, como se explica más adelante. Free taxes h and r block   Además, para calcular las pérdidas o ganancias de una venta u otra enajenación o para calcular deducciones por depreciación, agotamiento o amortización sobre bienes comerciales, tiene que aumentar o reducir la base (la base ajustada del donante) por los ajustes requeridos a la base mientras usted tuvo los bienes. Free taxes h and r block Vea Base Ajustada , anteriormente. Free taxes h and r block   Si recibió una donación durante el año tributario, aumente la base de la donación (la base ajustada del donante) por la parte del impuesto sobre donaciones pagado sobre esta donación debido al aumento neto en valor de la donación. Free taxes h and r block Calcule el aumento multiplicando el impuesto pagado sobre la donación por la siguiente fracción. Free taxes h and r block El numerador de la fracción es el aumento neto del valor de la donación y el denominador es la cantidad de la donación. Free taxes h and r block   El aumento neto del valor de la donación es el valor justo de mercado de la donación menos la base ajustada del donante. Free taxes h and r block La cantidad de la donación es el valor para fines del impuesto sobre la donación después de haber sido reducida por toda exclusión anual y deducción conyugal o caritativa que corresponda a la donación. Free taxes h and r block Ejemplo. Free taxes h and r block En el año 2013, usted recibió una donación de bienes de su madre que tenía un valor justo de mercado de $50,000. Free taxes h and r block La base ajustada de su madre era $20,000. Free taxes h and r block La cantidad de la donación para propósitos del impuesto sobre donaciones era $36,000 ($50,000 menos la exclusión anual de $14,000). Free taxes h and r block Su madre pagó un impuesto sobre donaciones de $7,320 sobre los bienes. Free taxes h and r block La base de usted es $26,076, calculada de la siguiente manera: Valor justo de mercado. Free taxes h and r block $50,000 Menos: Base ajustada −20,000 Aumento neto en valor $30,000     Impuesto sobre la donación pagado $7,320 Multiplicado por ($30,000 ÷ $36,000) × 0. Free taxes h and r block 83 Impuesto sobre la donación debido al aumento neto en valor $6,076 Base ajustada de los bienes para su madre +20,000 La base de los bienes para usted $26,076 Nota: Si recibió una donación antes de 1977, la base de la donación para usted (la base ajustada del donante) incluye todos los impuestos sobre donaciones pagados sobre ésta. Free taxes h and r block Sin embargo, la base no puede ser mayor que el valor justo de mercado de la donación al momento en que se le dio a usted. Free taxes h and r block Bienes Heredados Su base en bienes heredados de un difunto que falleció antes del 1 de enero de 2010 o después del 31 de diciembre de 2010, es normalmente uno de los siguientes: El valor justo de mercado de los bienes en la fecha de muerte del difunto. Free taxes h and r block El valor justo de mercado en la fecha de valuación alternativa si el representante personal del caudal hereditario elige usar una valuación alternativa. Free taxes h and r block El valor según el método de valuación de uso especial para bienes raíces usados en actividades agrícolas o en el ejercicio de un negocio estrechamente controlado por pocos accionistas si se elige para propósitos del impuesto sobre la herencia. Free taxes h and r block La base ajustada del terreno del difunto hasta el valor excluido de la herencia sujeto a impuestos del difunto como una servidumbre de conservación calificada. Free taxes h and r block Si no hay que presentar una declaración del impuesto federal sobre la herencia, la base de los bienes heredados es el valor tasado en la fecha de fallecimiento para los impuestos estatales sobre la herencia o la transmisión. Free taxes h and r block Para obtener más información, consulte las Instrucciones del Formulario 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Declaración del impuesto sobre el patrimonio (y transferencia con salto de generación) de los Estados Unidos), en inglés. Free taxes h and r block Bienes heredados de un difunto que falleció en 2010. Free taxes h and r block   Si heredó bienes de un difunto que falleció en 2010, pueden aplicarse requisitos especiales. Free taxes h and r block Para más información, vea la Publicación 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010 (Trato tributario de bienes adquiridos de un difunto que falleció en 2010), en inglés. Free taxes h and r block Bienes gananciales. Free taxes h and r block   En las jurisdicciones donde rigen las leyes de la comunidad de bienes gananciales (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington y Wisconsin), se considera generalmente que cada cónyuge posee la mitad de los bienes gananciales. Free taxes h and r block Al fallecer cualquiera de los cónyuges, el total del valor de los bienes gananciales, aún la parte que le pertenece al cónyuge sobreviviente, normalmente se convierte en la base de la totalidad de los bienes. Free taxes h and r block Para que esta regla corresponda, por lo menos la mitad del valor de los bienes gananciales tiene que poderse incluir en el patrimonio bruto del difunto, independientemente de si se tiene que presentar o no una declaración sobre la herencia. Free taxes h and r block Ejemplo. Free taxes h and r block   Usted y su cónyuge tenían bienes gananciales cuya base era $80,000. Free taxes h and r block Cuando su cónyuge falleció, la mitad del valor justo de mercado de los bienes gananciales era incluible en el patrimonio de su cónyuge. Free taxes h and r block El valor justo de mercado de los intereses de los bienes gananciales era $100,000. Free taxes h and r block La base de su mitad de los bienes después de la muerte de su cónyuge es $50,000 (la mitad del valor justo de mercado de $100,000). Free taxes h and r block La base de la otra mitad que se pasa a los herederos de su cónyuge también es $50,000. Free taxes h and r block   Para más información, vea la Publicación 555, Community Property (Comunidad de bienes gananciales), en inglés. Free taxes h and r block Bienes de Uso Personal Cambiados a Uso Comercial o de Alquiler Si tiene bienes para uso personal y luego los cambia a uso comercial o los usa para producir ingresos de alquiler, puede empezar a depreciar dichos bienes al momento del cambio. Free taxes h and r block Para hacerlo, tiene que calcular la base para propósitos de depreciación al momento del cambio. Free taxes h and r block Un ejemplo de un cambio de bienes de uso personal a uso comercial o de alquiler sería alquilar su antigua vivienda personal. Free taxes h and r block Base para propósitos de depreciación. Free taxes h and r block   La base para depreciación es la menor de las siguientes cantidades: El valor justo de mercado de los bienes en la fecha del cambio. Free taxes h and r block La base ajustada en la fecha del cambio. Free taxes h and r block Ejemplo. Free taxes h and r block Hace varios años, usted pagó $160,000 por construir su casa en un terreno que costó $25,000. Free taxes h and r block Pagó $20,000 por mejoras permanentes a la vivienda y declaró una deducción por pérdidas fortuitas de $2,000 por daños a la vivienda antes de cambiar los bienes a uso de alquiler el año pasado. Free taxes h and r block Como el terreno no es depreciable, usted incluye sólo el costo de la vivienda al calcular la base para propósitos de determinar depreciación. Free taxes h and r block Su base ajustada en la vivienda, cuando cambió su uso, era $178,000 ($160,000 + $20,000 − $2,000). Free taxes h and r block En la misma fecha, su propiedad tenía un valor justo de mercado de $180,000, del cual $15,000 correspondían al terreno y $165,000 a la vivienda. Free taxes h and r block La base para calcular la depreciación de la vivienda es el valor justo de mercado en la fecha del cambio ($165,000) ya que es menor que la base ajustada ($178,000). Free taxes h and r block Venta de bienes. Free taxes h and r block   Si en el futuro usted vende o enajena los bienes cambiados a uso comercial o de alquiler, la base que use dependerá de si calcula pérdidas o ganancias. Free taxes h and r block Ganancia. Free taxes h and r block   La base para calcular una ganancia es la base ajustada de los bienes en el momento de la venta. Free taxes h and r block Ejemplo. Free taxes h and r block Suponga los mismos hechos que en el ejemplo anterior, excepto que usted vende los bienes obteniendo una ganancia después de descontar $37,500 por concepto de deducciones por depreciación. Free taxes h and r block Su base ajustada para calcular la ganancia es $165,500 ($178,000 + $25,000 (terreno) − $37,500). Free taxes h and r block Pérdida. Free taxes h and r block   Calcule la base para una pérdida empezando con la base ajustada o el valor justo de mercado de los bienes al momento del cambio a uso comercial o de alquiler, el que sea menor. Free taxes h and r block Luego haga ajustes (aumentos y reducciones) para el período después del cambio de uso de los bienes, como se explicó anteriormente bajo Base Ajustada . Free taxes h and r block Ejemplo. Free taxes h and r block Suponga los mismos hechos que en el ejemplo anterior, excepto que usted vende los bienes con pérdida después de descontar $37,500 por concepto de deducciones por depreciación. Free taxes h and r block En este caso, empezaría con el valor justo de mercado en la fecha del cambio a uso de alquiler ($180,000), ya que es menor que la base ajustada de $203,000 ($178,000 + $25,000 (terreno)) en esa fecha. Free taxes h and r block Reste de esa cantidad ($180,000) las deducciones por depreciación ($37,500). Free taxes h and r block La base para pérdidas es $142,500 ($180,000 − $37,500). Free taxes h and r block Acciones y Bonos La base de acciones o bonos que usted compre, por lo general, es el precio de compra más los costos de la compra, como comisiones y costos de registro o de traspaso. Free taxes h and r block Si obtiene acciones o bonos por un medio que no sea la compra, la base suele determinarse por el valor justo de mercado o la base ajustada del propietario anterior, como se explica anteriormente. Free taxes h and r block Tiene que ajustar la base de las acciones según ciertos hechos que sucedan después de la compra. Free taxes h and r block Por ejemplo, si recibe acciones adicionales de dividendos de acciones no sujetas a impuestos o divisiones de acciones, reduzca la base para cada acción, dividiendo la base ajustada de las acciones antiguas entre el número de acciones antiguas y nuevas. Free taxes h and r block Esta regla se aplica sólo cuando el número de acciones adicionales recibidas es idéntico al número de acciones tenidas. Free taxes h and r block Además, reduzca la base cuando reciba distribuciones no sujetas a impuestos. Free taxes h and r block Son un rendimiento de capital. Free taxes h and r block Ejemplo. Free taxes h and r block En el año 2011, compró 100 acciones de XYZ por $1,000, o sea, a $10 por acción. Free taxes h and r block En el año 2012, compró 100 acciones de XYZ por $1,600, o sea, a $16 por acción. Free taxes h and r block En el año 2013, XYZ declaró una división de acciones de 2 por 1. Free taxes h and r block Ahora tiene 200 acciones con una base de $5 por acción y 200 acciones con una base de $8 por acción. Free taxes h and r block Otras bases. Free taxes h and r block   Existen otras maneras de calcular la base de acciones o bonos, según cómo los adquirió. Free taxes h and r block Para obtener información más detallada, consulte Stocks and Bonds (Acciones y bonos) bajo Basis of Investment Property (Base de bienes de inversión) en el capítulo 4 de la Publicación 550, en inglés. Free taxes h and r block Cómo identificar acciones o bonos vendidos. Free taxes h and r block   Si puede identificar correctamente las acciones o los bonos que vendió, entonces la base de éstos es el costo u otra base de las acciones o bonos específicos. Free taxes h and r block Si compra y vende valores en fechas distintas y en cantidades distintas y no puede identificar correctamente las acciones vendidas, entonces la base de los valores que venda es la base de los valores que adquirió primero. Free taxes h and r block Para obtener más información sobre cómo identificar los valores que venda, consulte Stocks and Bonds (Acciones y bonos) bajo Basis of Investment Property (Base de bienes de inversión) en el capítulo 4 de la Publicación 550, en inglés. Free taxes h and r block Acciones de fondos mutuos. Free taxes h and r block   Si vende acciones de fondos mutuos que adquirió en fechas distintas y a precios distintos, y que dejó en depósito en una cuenta mantenida por un custodio o agente, puede optar por usar una base promedio. Free taxes h and r block Para obtener más información, consulte la Publicación 550, en inglés. Free taxes h and r block Prima de bonos. Free taxes h and r block   Si compra un bono sujeto a impuestos con prima (o sea, a un precio que excede su valor nominal) y elige amortizarla, reste de la base del bono la prima amortizada que deduzca cada año. Free taxes h and r block Para obtener más información, consulte Bond Premium Amortization (Amortización de primas de bonos) en el capítulo 3 de la Publicación 550, en inglés. Free taxes h and r block Aunque no puede deducir la prima sobre un bono exento de impuestos, tiene que amortizar la prima cada año y restar la cantidad amortizada de la base del bono. Free taxes h and r block Descuento de la emisión original (OID) sobre instrumentos de deuda. Free taxes h and r block   Tiene que aumentar la base de un instrumento de deuda de un descuento de la emisión original (OID, por sus siglas en inglés) por el OID que incluya en sus ingresos por ese instrumento. Free taxes h and r block Consulte Descuento de la emisión original (OID) en el capítulo 7 y la Publicación 1212, Guide to Original Issue Discount (OID) Instruments (Guía de instrumentos del descuento de la emisión original (OID)), en inglés. Free taxes h and r block Obligaciones exentas de impuestos. Free taxes h and r block    Por lo general, el OID sobre las obligaciones exentas de impuestos no está sujeto a impuestos. Free taxes h and r block Sin embargo, cuando enajene una obligación exenta de impuestos emitida después del 3 de septiembre de 1982 y comprada después del 1 de marzo de 1984, tiene que acumular el OID sobre la obligación para determinar su base ajustada. Free taxes h and r block El OID acumulado se suma a la base de la obligación para determinar su pérdida o ganancia. Free taxes h and r block Consulte el cápitulo 4 de la Publicación 550, en inglés. Free taxes h and r block Prev  Up  Next   Home   More Online Publications
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Understanding Your CP290 Notice

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Page Last Reviewed or Updated: 19-Dec-2013

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The Free Taxes H And R Block

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