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steveoh
February 23, 2021
Question

How to Categorize Payment Made from HSA?

  • February 23, 2021
  • 1 reply
  • 0 views

So I just started my Healthcare Savings Account this year.  It's plain and obvious how to categorize an HSA contribution using the self-employed app.  But of course when I actually pay a medical expense from my HSA, the app asks me to categorize that as well.  What category does that fall under?

Thanks in advance!

    1 reply

    Tori B
    Tori B
    February 23, 2021

    Hey there, @steveoh. 

     

    Thanks for reaching out to the Community for support. I hope you're enjoying the day so far. 

     

    I recommend consulting with your accountant for further advice on what to categorize this as. Your accountant will know what's best for you and your business. If you don't have an accountant, don't sweat. You can find one here in our Resource Center. 

     

    In the meantime, feel free to check out Schedule C and expense categories in QuickBooks Self-Employed for further details about this process. 

     

    Please let me know if you have any questions or concerns. I'll be here every step of the way. Take care and have a wonderful day ahead! 

      S
      steveohAuthor
      February 23, 2021

      I appreciate the canned response.  I don't need an accountant for this, more like app tech support.  I already understand that my contributions to my HSA are tax deductible up to $7200/year for a family of 2.  I just want to know what the app is asking me to do with the outgoing transactions from the HSA.  Do I just exclude them?  Or is there a different box I put those in?

        MaryLandT
        MaryLandT
        February 23, 2021

        Allow me to join in this thread and share additional information about categorizing a payment made from HSA, steveoh.

         

        In QuickBooks Self-Employed, there are two types of healthcare deductions that can affect your quarterly tax estimates:

        • Health Insurance Premiums, including dental and vision premiums
        • Health Savings Account (HSA) contributions.

        If you're qualified to deduct the expense, you need to fill in the Healthcare profile. Let me show you how:

         

        1. Sign in to QuickBooks Self-Employed.
        2. Select the profile ⚙ icon.
        3. Select Healthcare.
        4. Select the Healthcare premiums tab.
        5. Enter your info and answer the questions about your health insurance situation.
        6. Select the Health Savings Account tab.
        7. Answer the questions about your health insurance situation.
        8. When you're done, select Save.

        As you fill out the form, we'll let you know which deductions you qualify for. We'll also give you specific steps to make sure you get them.

         

        Once done, you can categorize the expense. Here's how to do it:

         

        1. Go to the Transactions menu.
        2. Find the healthcare expense, or select Add transaction and enter it manually.
        3. Select Business for the type.
        4. Select the link in the Category column.
        5. Select Insurance and then Health insurance premium or Health Savings Account contribution for the type.

        To learn more about this, check out these articles:

        If you aren't qualified, you can exclude the payment on your Transactions page.

         

        Stay in touch with me if there's anything else you need about this by commenting below. I'm always around to help categorize your transactions.

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