HSA

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skarme312
Posts: 5
Joined: Mon Apr 26, 2021 2:24 pm

HSA

Post by skarme312 »

I use to work in the US for years before moving to Canada. I still have the HSA with nearly 20K in balance. The penalty for early withdrawal is too much so I rather keep the account. Had a few questions regarding this-
1) Does HSA have to be reported on form T1135?
2) Does interest on this account be taxed in Canada as income? 401k interests are not taxed but there is no official rule for HSA.
3) If I use the HSA for qualified medical expenses, will this account as income?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: HSA

Post by nelsona »

1. Yes
2. It does not need to be reported.
3. No. And the expenses can still be used on your tax return.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
skarme312
Posts: 5
Joined: Mon Apr 26, 2021 2:24 pm

Re: HSA

Post by skarme312 »

Thanks. Quick follow up on the T1135. It has a section to report income. Do I report the interest on the HSA or enter 0?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: HSA

Post by nelsona »

I would report 0
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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