Other HSA Distributions
Out of Scope HSA Distributions
The following are out of scope for the VITA/TCE programs. The information is provided for awareness purposes only. Taxpayers with these issues should be referred to a professional tax preparer.
A taxpayer cannot claim the health coverage tax credit for premiums paid with a tax-free distribution from an HSA.
As covered in the Payments lesson of the Basic course, Form 8885, Health Coverage Tax Credit, is out of scope for the VITA/TCE programs.