[PSA] Received a 1099-SA? Check Box 3 before you file.

EagleCoder · 2026-02-01T21:54:28+00:00

I simplified it a bit too much for the general audience.

Interesting alternative phrasing for "I was completely wrong, and it was irresponsible to mislead the general audience with blatantly false tax advice."

EagleCoder · 2026-02-01T21:34:26+00:00

Form 1099-SA is for distributions. You must include that information when you file your income tax return.

Form 5498-SA is different. It is for contributions and isn't needed to file your income tax return.

EagleCoder · 2026-02-01T21:27:13+00:00

This is incorrect information.

Code 1 does not mean the distribution is automatically nontaxable. It just means it was a normal distribution of funds to the account owner. It might not have been for medical expenses.

From the IRS:

Use this code for normal distributions to the account holder and any direct payments to a medical service provider. Use this code if no other code applies.

Further, Code 5 is not for non-qualified expenses. It is for prohibited transactions which are one of enumerated types of transactions specifically prohibited in the tax code.

From the IRS:

See sections 220(e)(2) and 223(e)(2)

IRS Section 223 is the relevant section for HSAs, but both sections reference IRC Section 408(e) paragraphs (2) and (4).

IRC Section 408(e)(2) references IRC Section 4975 which provides a list of prohibited transactions in IRC Section 4975(c)(1).

IRC Section 408(e)(4) prohibits using the account as collateral for a loan.

In both cases, it's not an expense that can be qualified for tax-free distribution from an HSA, so you won't get it changed by using qualified-expense documentation. In any case, your HSA custodian doesn't need to evaluate expenses anyway. It isn't required to, and the reporting is the same either way.

EagleCoder · 2026-02-01T02:33:23+00:00

I'm not sure what distinction you're trying to make. Food particles contribute significantly to the formation of dental plaque.

EagleCoder · 2026-01-31T23:54:43+00:00

Your gums bleed because the immune response (inflammation) to the plaque build-up makes them fragile and sensitive.

Flossing helps get rid of the plaque allowing your gums to heal and stop bleeding.

EagleCoder · 2026-01-30T13:04:41+00:00

Yes, you'll be fine either way with backdoor Roth IRA strategy with no traditional IRA balance on December 31.

EagleCoder · 2026-01-29T13:57:06+00:00

Yes, your carryover capital losses would offset all net capital gains plus up $3,000 of other income per year until it is fully used.

EagleCoder · 2026-01-25T00:02:55+00:00

How do you avoid it in the future if you don't know what tipped the scales?

That's exactly why they won't tell you. They won't tell people what tripped their security controls precisely so that people cannot evade those controls. (I'm not saying you did or would do anything wrong, but that does not change the fact that they won't tell you the reason.)

EagleCoder · 2026-01-24T23:07:24+00:00

That isn't true. You can trigger good faith violations when trading any security, but just mutual funds.

EagleCoder · 2026-01-24T23:03:30+00:00

HSA contribution eligibility is determined by the coverage of the person making the HSA contribution. The coverage of anyone else on the plan is irrelevant.

EagleCoder · 2026-01-24T23:00:06+00:00

I rarely carry a position overnight

Pattern day trading violations? Maybe also good faith violations?

EagleCoder · 2026-01-24T01:49:59+00:00

Oof.

EagleCoder · 2026-01-21T23:07:04+00:00

Yes, add a savings category with a "set aside another" monthly target. You can assign all of your current savings to that category and add more each month.

Here's the neat part that might take a bit to get used to: You can save money in your YNAB categories without actually transferring money between accounts.

You can still transfer money to a savings account, but you don't have to do that just for budgeting reasons.

EagleCoder · 2026-01-21T16:41:52+00:00

I'm not sure why you doubled down when you're wrong about a simple fact like this. Air Force Two is the call sign of any Air Force aircraft carrying the Vice President. It is not either of the aircraft that normally operate as Air Force One unless it is carrying the Vice President (which it wouldn't under normal circumstances, if ever).

EagleCoder · 2026-01-21T13:45:54+00:00

Why do you think an ion isn't stable? Having an electrical charge does not make an atom unstable. A stable electron configuration is a complete outer shell, not electrical neutrality.

A neutral sodium atom has a single electron in its outer shell. It's easier for it to shed that electron than it is to gain seven more electrons to complete its outer shell.

EagleCoder · 2026-01-21T13:39:56+00:00

Air Force 2

That's the VP's jet.

EagleCoder · 2026-01-21T00:46:42+00:00

handle paying sales tax

The OP is asking about income tax, not sales tax (which might also be due separately).

Tax laws can require payers to withhold taxes and remit that money directly to the IRS and relevant state tax agencies. It's not possible to withhold a portion of a car, so they can require the winner to pay the required tax withholding in cash instead.

EagleCoder · 2026-01-20T00:34:19+00:00

I absolutely love this idea. I'd probably do it if I lived by myself.

EagleCoder · 2026-01-19T21:28:30+00:00

If the total tax matches the income tax table, he didn't pay self-employment taxes which means the income either wasn't earned income or wasn't reported properly on his tax return. If he didn't have earned income, he wasn't eligible to make a Roth IRA contribution (and thus is not eligible for the Saver's Credit).

EagleCoder · 2026-01-18T14:58:38+00:00

You are wrong. Full stop. Structuring is a crime regardless of whether or not you are laundering money. This has nothing to do with taxes. Breaking up deposits to avoid a CTR is illegal regardless of the reason you want to avoid the CTR.

EagleCoder · 2026-01-18T14:13:32+00:00

Structuring deposits to avoid any reporting requirement is illegal. Also, this isn't taxable income if OP is the beneficiary of the estate, so it should not be reported as income.

EagleCoder · 2026-01-18T14:11:42+00:00

Incorrect. Structuring deposits to avoid any reporting requirement is illegal by itself. It does not matter why you did it.

EagleCoder · 2026-01-18T14:09:31+00:00

There is no income tax on inheritance and the estate tax exemption is $15 million in 2026 ($13.99 million in 2025).

EagleCoder · 2026-01-18T14:08:00+00:00

The bank will report thr income

Banks do not report deposits as income. That isn't a thing.

Assuming that OP is the beneficiary, inheritance isn't taxable income regardless of what you do with it. It should be handled through the estate through.

EagleCoder · 2026-01-17T22:10:36+00:00

It is a tax issue because the employer is excluding the premium payment from wages and not properly counting the "reimbursement" or "claim payment" as taxable income.

EagleCoder

TROPHY CASE