My company uses an HSA (Health Savings Account) for our insurance payments.I'm allowed $1250 yearly,which is divided into 4 quarters,every 3 months $315.I used all of my $1250 last year (2007) towards medical bills.Will I have to pay the IRS taxes on this money? :confused:

You don't pay taxes on that money. If you don't use all all of the money set aside for that calendar year you will lose it as it doesn't roll over from one year to the next. Our HSA plan gives us until March of the year to submit everything for the previous year and we make sure we submit everything to use up every penny.