HSA spending tax deductible?

wjbader · #1 (**permalink**) 02-28-2014, 02:00 PM

I am located in MN and have a question pertaining to medical spending with HSA and whether or not it is tax deductible.

Here is my situation:
I am under my parents insurance, per law. I am filing as an independent (at this point) and have made a lot of medical payments over the past year. For simplicity's sake:
Let's say I have spent $1,000 dollars a month on health care. My insurance company reimburses about $600 dollars of the $1,000. My insurance has an HSA, and for the remaining $400 I pay with that HSA. Is the $400 I pay, from the HSA, considered out of pocket? The money for the HSA comes from my parent's paycheck. Is this $400/month tax deductible?

Thanks!

Wnhough · #2 (**permalink**) 03-01-2014, 02:27 AM

Quote:

Originally Posted by wjbader

#1;I am under my parents insurance, per law. I am filing as an independent (at this point) and have made a lot of medical payments over the past year. For simplicity's sake:
Let's say I have spent $1,000 dollars a month on health care. My insurance company reimburses about $600 dollars of the $1,000. My insurance has an HSA, and for the remaining $400 I pay with that HSA. Is the $400 I pay, from the HSA, considered out of pocket?

#2; The money for the HSA comes from my parent's paycheck. Is this $400/month tax deductible?

Thanks!

#1;HSA are tax-deductible savings plans that allow you to save pre-tax dollars for future healthcare expenses. Has are paired with high-deductible health insurance plans. Contributions to an hsa are tax-deductible. Earnings, such as interest and dividends, in the hsa are tax-exempt at the federal level. Withdrawals from a has are tax-free as long as the funds are used for qualified medical expenses.

#2;I guess You can't deduct you make the contributions.