Author Topic: Itemizing medical expense deduction, with HDHP/HSA as a factor  (Read 1715 times)

headachemustache

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Itemizing medical expense deduction, with HDHP/HSA as a factor
« on: February 16, 2016, 06:03:22 AM »
Working my way through our taxes, and it looks like we're able to itemize again this year, so I'm trying to make sure we don't miss out on any deductions.  In totaling our medical expenses, I'm looking for confirmation as to what I can/can't include. 

Info: We have an employer-sponsored HDHP (with HSA) with a $3000 family deductible.  Box 12W on the W2 shows $7650, which is the pretax employee-elected HSA contribution ($6150, yes, over age 50) + employer HSA contribution ($1500).   Employee health insurance premium is >$5K.  We are banking the HSA and not tapping it for current medical expenses.

Questions:

(1) I think it's the case, but can someone confirm for me that our Schedule A medical expense deduction would be a total of $3000 (plan deductible) + all eligible out of pocket medical expenses (those beyond the $3K deductible)? 

(2) ... and we cannot include the health insurance premium amount ($5K) paid out of salary, correct, in that it is a pre-tax amount?

Thank you!

MDM

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Re: Itemizing medical expense deduction, with HDHP/HSA as a factor
« Reply #1 on: February 16, 2016, 08:06:13 AM »
(1) I think it's the case, but can someone confirm for me that our Schedule A medical expense deduction would be a total of $3000 (plan deductible) + all eligible out of pocket medical expenses (those beyond the $3K deductible)?
A few things:
 - You have to have spent the $3000 on actual expenses.  Wasn't clear whether you had spent that much or not.  In other words, you could simply say "...medical expense deduction would be...all eligible out of pocket medical expenses."  See https://www.irs.gov/pub/irs-pdf/i1040sca.pdf for details.
 - You have to deduct 10% of your AGI (7.5% if you are 65 or older) from whatever medical expenses you had (see schedule A line 3).
 - You cannot get reimbursed from your HSA for any medical expenses that have been used for itemized deductions (see https://www.irs.gov/publications/p969/ar02.html).

Quote
(2) ... and we cannot include the health insurance premium amount ($5K) paid out of salary, correct, in that it is a pre-tax amount?
Correct.

headachemustache

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Re: Itemizing medical expense deduction, with HDHP/HSA as a factor
« Reply #2 on: February 16, 2016, 11:15:56 AM »
Thank you, MDM.  Yes - all are eligible medical expenses far exceeding $3k, none (to be) reimbursed by HSA, and I understand about the 10% of AGI as threshold.

 

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