At the moment, IRS guidance does not specify whether third party contributions into a recipient’s health savings account through a platform like Missions must be included in a recipient’s taxable income. Starship is currently of the view that such contributions do not need to be included in a recipient’s taxable income.
However, if subsequent IRS guidance clarifies that it is required, we or the payment processor may be required to issue a 1099K Form, though we believe that would only potentially be required where aggregate third party contributions into a Mission exceed $600 in a calendar year.
Content presented here is not intended as legal, tax, financial or medical advice. It is the member’s responsibility to ensure eligibility requirements for contributions and qualified medical expenses. Always consult a professional tax advisor before making financial decisions with tax implications.