Today TaxMama hears from Tawfiq in the TaxQuips Forum with questions. “Can I deduct my qualified medical expenses with other itemized deductions if I used HSA funds to pay them? And where can I find health insurance that specifically qualifies as an HSA (Health Savings Arrangement)?
Rita Lewis, our Connecticut Enrolled Agent explains that you cannot double-dip. If you paid the costs from your Health Savings Account, you may not also claim the itemized deduction. Rita says that by using the HSA contribution, you’re taking deductions that would otherwise be reduced by 7.
5% of your AGI – or may not even be deductible. You’re getting a good tax benefit.
Your next question is – where do you find eligible health insurance?
In the beginning, when HSAs were first introduced, coverage was hard to find. No longer. eHealthInsurance immediately started gathering information for you. They have an area of the website that is specifically designed to help you find an HSA plan.
(note: this is a commissioned link. But I use their services when looking for medical and dental plans, too.)
Your HSA plan needs two components – the bank accounts (Health Savings Account) and the insurance coverage (Health Savings Arrangement). They both have to meet the standards and definition of the HSA rules.
Although it took a while for the insurance companies to get the plans created and approved, within about a year after the law was passed, most insurance companies had developed approved plans. You’ll be able to shop at eHealthInsurance AND find plans that your doctors accept.
The two MOST important features of a health plan (at least, to me) are:
1) That the hospital of your choice is a participant.
2) That the key physicians who care for you (your general practitioner, at least), are part of the plan.
Ask them each what coverage they accept and look for a plan they both accept.
And remember, you can find answers to all kinds of questions about Health Savings Arrangements, and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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