HSA and Schd A Medical Deductions

[artbuc]

What is the name of your state (only U.S. law)? PA

I and my wife are pre-Medicare retirees. My former employer is offering a high deductible health insurance plan which qualifies for an HSA. I am trying to learn about HSA's to determine if it is a good idea for us. I am 62 and my wife is 59. I have been able to find answers to most of my questions except this one:

Can I deduct medical expenses paid for by my HSA on Schedule A? I have not found anything that says I can or can not but it seems like it would be double dipping. For example, I make a $2000 contribution to my HSA and reduce my AGI by $2000. Then I incur $2000 in qualified medical expenses which I pay for with a distribution from my HSA. Can I deduct that $2000 on Schedule A? Thanks.

 

[davew128]

You can't do it.

 

[artbuc]

You can't do it.

Thanks. Sounds logical.

 

[ecmst12]

Yes, that would be double dipping.

 

[artbuc]

Thanks for the responses. A couple more questions please:

1. If I have funds in my HSA account, do I have to use them to pay for current qualified medical expenses or can I save them for future medical expenses?

2. If I have funds in my HSA account and I am using those HSA funds to pay for some of my qualified medical expenses, can I deduct on Sched A non-HSA qualified expenses (health insurance premiums prior to age 65)?

Thanks.

 

[FlyingRon]

You can keep the HSA account (and the funds therein) open forever. They don't expire at the end of the year like FSAs. When you reach 65, you can either use the HSA for qualified medical stuff medicare doesn't cover or you can take deductions from it (the latter will be taxable similar to withdrawing from other tax deferred plans like traditional (non-Roth) IRAs).

You can't deduct the HSA contributions nor anything you pay for from the HSA.
You can deduct things you pay for with sources other than the HSA subject to the limits on those deductions in schedule A.

 

[davew128]

You can't deduct the HSA contributions

Did you really just say that?

 

[FlyingRon]

Did you really just say that?

Yes I did and it is true. You can not deduct HSA contributions on Schedule A as the poster asked.

You can have your HSA contributions done pre-tax (and hence not subject to the schedule A thresholds). Either his employer does so, or he takes them off the top on Form 8889.

 

[artbuc]

Thanks again. Yes, I may pay for 2012 medical expenses from non-HSA funds as I could possibly exceed the Schd A threshhold and get a small itemized deduction. However, once the threshhold increases to 10% of AGI, I will likely not have enough medical expenses for Sched A.

 

[davew128]

Yes I did and it is true. You can not deduct HSA contributions on Schedule A as the poster asked.

That's not what the OP asked and not what you said.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

I and my wife are pre-Medicare retirees. My former employer is offering a high deductible health insurance plan which qualifies for an HSA. I am trying to learn about HSA's to determine if it is a good idea for us. I am 62 and my wife is 59. I have been able to find answers to most of my questions except this one:

Can I deduct medical expenses paid for by my HSA on Schedule A? I have not found anything that says I can or can not but it seems like it would be double dipping. For example, I make a $2000 contribution to my HSA and reduce my AGI by $2000. Then I incur $2000 in qualified medical expenses which I pay for with a distribution from my HSA. Can I deduct that $2000 on Schedule A? Thanks.

No, you cannot take schedule A deductions for medical expenses paid by your HSA, because those expenses are deducted pre-tax. So you are right, it would be double dipping. Its similar to medical insurance. You can deduct medical insurance premiums that are paid post tax, but you cannot deduct medical insurance premiums that are paid pre tax.