Question about Health Savings Account Taxes?
itdaytrader asked:
Here’s the deal. I took out money from my HSA when I left my employer. The only real quidance I can find out what Qualifies as a medical expense is “that your purchase provides relief from physical or mental problems/symptoms.”
Here’s the deal. I took out money from my HSA when I left my employer. The only real quidance I can find out what Qualifies as a medical expense is “that your purchase provides relief from physical or mental problems/symptoms.”
I purchased a new couch and memory foam bed in 2006. They both releave back pain caused by my old fruniture and help calm the stress of everyday life when I take a nap.
What do you all think, qualify or no?
Layne Leming
No, these would not qualify. This page shows what is eligible. There is a slight possibility you could get these, if you have a doctor (must be MD) write a letter of necessity.
You can’t be serious about “stress of everyday life”. Replacing uncomfortable furniture is not tax deductible. If you can provide the IRS with your physician’s office notes stating that he has diagnosed you with a disease that requires these items, you’re most likely still going to find yourself in an uncomfortable situation with an auditor, possibly tax court, and even more stress in your everyday life.
Unless the bed is a hospital bed, then no household furnishing are not deductible on the Federal Tax return for Medical expenses, or basically any other deduction or expense
Publication 502
No qualify. These items are not “primarily to alleviate or prevent a physical or mental defect or illness” (Pub 502)
You will need to add back the deduction (I assume this was an employer contribution that appears on your W2, box 12, code W). You also will be subject to a 10% penalty.
As Form 8889 Part II directs you, the amount of your contribution that you took out goes on Line 21. A 10% penalty will also be assessed and it goes on Line 63.
Here is a pretty complete list of eligible expenses. I don’t see it on there either.