Can I Use My Hsa for Family Member Stockman
Who Can I Utilize My Health Savings Account For?
- Vicky Warren
- three min read
Y'all may exist well versed on what's considered a qualified medical expense, but did you know that yous can simply use your HSA for specific people? Nosotros particular the different scenarios in which y'all can employ your HSA for others.
A Health Savings Account (HSA) is an amazing way to help you pay for qualified medical expenses. If you're looking specifically for what is considered a qualified medical expense, Lively maintains a searchable database of qualified health expenses. The next question is who exactly can you utilize your HSA funds for?
What's the eifference between an individual HSA and family unit HSA?
Health Savings Accounts are endemic by i person. An HSA is an private account and are established using the name and taxation ID number of one specific individual.
An individual'southward coverage under a High Deductible Wellness Plan determines the amount they can contribute - the "family" amount or the "individual" amount - to an HSA. These HSA contribution limits are ready each year by the IRS. Those over 55 can make an additional catch-upward contribution of $1,000.
You must exist covered under an HDHP to make HSA contributions. If you alter wellness insurance coverage, you can still use the existing HSA funds for qualified medical expenses, but cannot make additional contributions when non covered under an HDHP.
Who is covered past my HSA?
Once yous've obtained qualified HDHP coverage, established the HSA, and made contributions - yous need to know what you can utilize the money for.
As for the "what," you can spend your HSA funds on qualified medical expenses. Many healthcare services and products are included, IRS Publication 529 lists HSA eligible items.
When it comes to the "who" part, there are iii groups of people you tin employ your HSA funds for.
IRS Publication 969 states:
Qualified medical expenses are incurred by the following:
- Y'all
- Your spouse
- Any dependents you claim on your tax return
- Anyone you could merits as a dependent on your tax return, merely don't for varying reasons
Even if yous have "self-simply" HDHP coverage, you tin can use your HSA funds on these individuals.
You and your spouse
It goes without saying that you can spend your HSA funds on yourself. You can also utilize the funds for qualified medical expenses for your spouse - fifty-fifty if yous have "self-only" HDHP coverage.
The plan owner does non have to be present when their spouse uses HSA funds. Your spouse can also use their own cash, debit, or credit carte to pay and then reimburse themselves with the HSA funds. Be sure to keep every receipt to justify the reimbursements. Your spouse can obtain healthcare using pre-taxation dollars using the HSA money.
Your children and other dependents
Yous can use HSA money on your children and other dependents. The IRS' definition of a dependent is a qualifying child or relative, which could include a related member of your family you care for. Dependent expenditures are qualified medical expenses, and then make the most of your HSA funds!
Those y'all could claim every bit dependents
At that place is a tertiary group of people you tin use your HSA funds for. The IRS words it every bit people who could take been your dependent just were not for varying reasons.
This group is defined every bit: Whatsoever person you could take claimed as a dependent on your tax return except that:
- The person filed a joint tax render
- The person had a gross income of $iv,050 or more than
- You, or your spouse, if filing jointly, could exist claimed every bit a dependent on someone else'due south taxation return
A couple of examples include a child whose income is higher up the limit, and so they may not qualify every bit an IRS dependent, or a married kid who files a joint tax render but is still eligible for coverage under your plan. You lot can use your HSA funds for their qualified medical expenses in these cases.
To wrap information technology up, you can use HSA funds for yous, your spouse, your children, and other dependents, and even those you could merits as dependents simply don't for some reason or another. HSAs become even more appealing, knowing you can employ pre-tax dollars to pay for your entire family's healthcare expenses!
Read more by Vicky Warren
Vicky Warren, once a nurse, at present a freelance healthcare author and social media coach.
Disclaimer: the content presented in this article are for informational purposes merely, and is not, and must not be considered tax, investment, legal, accounting or financial planning communication, nor a recommendation as to a specific course of action. Investors should consult all available data, including fund prospectuses, and consult with appropriate tax, investment, bookkeeping, legal, and bookkeeping professionals, equally appropriate, before making whatsoever investment or utilizing whatsoever financial planning strategy.
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Source: https://livelyme.com/blog/who-can-use-hsa/
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