Tax Question_Related to HSA

[maverickfhs]

So I had a medical expense where I forgot to use my HSA card, instead used my regular card.

Is there a way I can expense(or reverse it) while doing my taxes? I do have a receipt and all other stuff.

Thank you for the advice

 

[OTCW]

HSA receipts are good for life unlike FSA receipts. My understanding is you can withdrawal money from your HSA at any time for the amount of those receipts.

 

[danez_yoda]

You know your are sleeping on the best retirement savings plan there is. The money goes in tax free, and the company sometimes kicks in some as well. Then it can be invested in mutual funds of various types which could grow at market rates. Keep that for 30 years and you'll have a nice nest egg to cover the most expensive part of retirement...Medical expenses.

There are no other savings plans where it goes in pre-tax and the company also contributes pre-tax, it grows tax free then you can take it out tax free. Thats a HUGE gain.

 

[Brybo86]

Originally Posted By: maverickfhs
So I had a medical expense where I forgot to use my HSA card, instead used my regular card.

Is there a way I can expense(or reverse it) while doing my taxes? I do have a receipt and all other stuff.

Thank you for the advice

Yes I have my hsa card linked to my checking and just move the funds after I pay for them.
Originally Posted By: danez_yoda
You know your are sleeping on the best retirement savings plan there is. The money goes in tax free, and the company sometimes kicks in some as well. Then it can be invested in mutual funds of various types which could grow at market rates. Keep that for 30 years and you'll have a nice nest egg to cover the most expensive part of retirement...Medical expenses.

There are no other savings plans where it goes in pre-tax and the company also contributes pre-tax, it grows tax free then you can take it out tax free. Thats a HUGE gain.

Yes I agree and HSA is also better than 401k/403b because there aren't any FICA taxes taken out, unlike 401k

 

[bubbatime]

Originally Posted By: Brybo86
Yes I have my hsa card linked to my checking and just move the funds after I pay for them.


You pay for your medical expenses out of your checking account, and then reimburse yourself from the HSA? Why? Your checking account funds are taxed. Wouldn't it be better to just use the HSA funds using their debit/credit card to pay for funds directly, so that medical bills are paid tax free? Maybe I'm missing something?

I contribute the max to my HSA. My company also puts in $1000 or $1500 a year or so. I also think it will be a great account to have in retirement to pay for medical bills.

 

[Brybo86]

Originally Posted By: bubbatime
Originally Posted By: Brybo86
Yes I have my hsa card linked to my checking and just move the funds after I pay for them.


You pay for your medical expenses out of your checking account, and then reimburse yourself from the HSA? Why? Your checking account funds are taxed. Wouldn't it be better to just use the HSA funds using their debit/credit card to pay for funds directly, so that medical bills are paid tax free? Maybe I'm missing something?

I contribute the max to my HSA. My company also puts in $1000 or $1500 a year or so. I also think it will be a great account to have in retirement to pay for medical bills.

I don't like carrying dozens of cards in my wallet. The fewer the better.

I use a credit card then reimburse once a month from HSA to checking while I'm logged in and paying all my other bills.

It still is tax free. When you move it , it asks if expenses are eligible. Also we see a couple providers who don't take a card.

Also FYI in retirement an hsa becomes the same as a traditional ira where you will have no penalty only your tax rate if used for non medical

 

[CincyDavid]

Walgreens has my HSA debit card in their system so I don't have to even carry it...

 

[maverickfhs]

Originally Posted By: bubbatime
Originally Posted By: Brybo86
Yes I have my hsa card linked to my checking and just move the funds after I pay for them.


You pay for your medical expenses out of your checking account, and then reimburse yourself from the HSA? Why? Your checking account funds are taxed. Wouldn't it be better to just use the HSA funds using their debit/credit card to pay for funds directly, so that medical bills are paid tax free? Maybe I'm missing something?


That's exactly my question, how can I reimburse myself, since I initially paid through a Credit card and now want to reimburse myself from my HSA account.

What would be the best strategy?

 

[bmwpowere36m3]

You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.

 

[maverickfhs]

Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?

 

[RhondaHonda]

Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?


You only need to save your receipts if you reimburse yourself for qualified HSA expenses. Say you pay for a prescription with your credit card, cash, check, loose change etc, and it was $112.45. You can make a withdrawal from the HSA for that amount and they will send you a check or deposit it into your bank if you have that setup. You would want to keep the receipt in the event you ever had to support the withdrawal.

 

[Brybo86]

Originally Posted By: maverickfhs
Originally Posted By: bubbatime
Originally Posted By: Brybo86
Yes I have my hsa card linked to my checking and just move the funds after I pay for them.


You pay for your medical expenses out of your checking account, and then reimburse yourself from the HSA? Why? Your checking account funds are taxed. Wouldn't it be better to just use the HSA funds using their debit/credit card to pay for funds directly, so that medical bills are paid tax free? Maybe I'm missing something?


That's exactly my question, how can I reimburse myself, since I initially paid through a Credit card and now want to reimburse myself from my HSA account.

What would be the best strategy?

Login to your hsa bank website and link your checking account. Then transfer funds

I don't think the hsa bank will send you an updated form, it will just get added to next year's form.

 

[PSS]

You can't do that through the Tax Stuff.

If you go to your HSA website, there should be option like pay bills and reimburse yourself. Call your HSA number if you can not find it.

 

[bmwpowere36m3]

Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?


Your confused on the "tax" principle with HSA... If you pay for a doctors visit, say its billed $100.00, with your HSA card it'll deduct that $100 from the HSA balance.

If you pay cash, check, personal CC/debit its still $100. So then your HSA reimburses you $100 (which won't be taxed if it was a qualified medical expense). Your HSA balance is reduced by $100 and your given back the $100 YOU spent.

 

[maverickfhs]

Originally Posted By: bmwpowere36m3
Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?


Your confused on the "tax" principle with HSA... If you pay for a doctors visit, say its billed $100.00, with your HSA card it'll deduct that $100 from the HSA balance.

If you pay cash, check, personal CC/debit its still $100. So then your HSA reimburses you $100 (which won't be taxed if it was a qualified medical expense). Your HSA balance is reduced by $100 and your given back the $100 YOU spent.


Yes, that makes sense. But HSA money is coming Pre-Tax and any credit card payment is done post tax. So would it make a difference or no?

 

[bmwpowere36m3]

Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?


Your confused on the "tax" principle with HSA... If you pay for a doctors visit, say its billed $100.00, with your HSA card it'll deduct that $100 from the HSA balance.

If you pay cash, check, personal CC/debit its still $100. So then your HSA reimburses you $100 (which won't be taxed if it was a qualified medical expense). Your HSA balance is reduced by $100 and your given back the $100 YOU spent.


Yes, that makes sense. But HSA money is coming Pre-Tax and any credit card payment is done post tax. So would it make a difference or no?


NO

 

[Wolf359]

Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
Originally Posted By: maverickfhs
Originally Posted By: bmwpowere36m3
You can either pay direct from your HSA (card) or reimburse yourself from the HSA. I've done both, the former is easier and the later involves requesting thru your HSA website or a phone call.

Either way, it's tax-free.


Yes correct, but payment through credit card won't be taxable so it would work. What if I paid through my checking account then in that case payment is coming post tax.

Also, would that amount be reported on 1098-SA since I ave already received the form?


Your confused on the "tax" principle with HSA... If you pay for a doctors visit, say its billed $100.00, with your HSA card it'll deduct that $100 from the HSA balance.

If you pay cash, check, personal CC/debit its still $100. So then your HSA reimburses you $100 (which won't be taxed if it was a qualified medical expense). Your HSA balance is reduced by $100 and your given back the $100 YOU spent.


Yes, that makes sense. But HSA money is coming Pre-Tax and any credit card payment is done post tax. So would it make a difference or no?


Yes it does, you basically get the credit card points and you end up with the $100 at the end. The tax aspect doesn't come into play because your effective credit card balance for medical expenses is 0 after you are reimbursed.

 

[maverickfhs]

Wolf359,

So just to make it easy, if I have an expense of $100, which I pay using a credit card and then pay myself from HSA that $100, I should be even and good to go, is this understanding correct? I can be an idiot

 

[bmwpowere36m3]

Originally Posted By: maverickfhs
Wolf359,

So just to make it easy, if I have an expense of $100, which I pay using a credit card and then pay myself from HSA that $100, I should be even and good to go, is this understanding correct? I can be an idiot

Yes

 

[bmwpowere36m3]

Originally Posted By: Wolf359
Yes it does, you basically get the credit card points and you end up with the $100 at the end. The tax aspect doesn't come into play because your effective credit card balance for medical expenses is 0 after you are reimbursed.


Points from the CC... that's an interesting angle.