Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Valued Pioneer
Posts: 4
Registered: ‎02-20-2014

Health reimbursement arrangement (HRA) versus FSA and HSA

There is no mention in the Help or Search features in the 2014 Deluxe software edition regarding Health Reimbursement Arrangements, and they are never mentioned in the questionnaire.

Are HRA's something that have no bearing on tax returns?

Or when I see the terms HSA, MSA, or FSA, in the Adjustments to Income section of the questionnaire, do I follow one of those to fill in my HRA information?

I do not get an end of year tax form form from my health insurer or employer for my HRA, but I do have reimbursements from it (and employer provided contributions to it??)  that I need to know how to manage, as I have large medical expenses that exceed 7.5% of income, so I want to ensure I am filling everything out properly. 

Associate (Council Member)
Posts: 2,518
Registered: ‎12-17-2012

Re: Health reimbursement arrangement (HRA) versus FSA and HSA

jandrwallace,

 

Welcome to the Community. 

 

Reimbursements from your HRA are already excluded from your income, so medical expenses associated with those reimbursements cannot be deducted on your tax return.  For more information, please see the following resources:

I hope this is helpful.

JerryG


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Pioneer
Posts: 2
Registered: ‎06-14-2017

Re: Health reimbursement arrangement (HRA) versus FSA and HSA

My related question is about how the software should handle HRA.  Because of my low income since retirement, the tax software makes the assumption that I should qualify for the Medicaid premium tax credit.  However, since I have money in an HRA and pay my insurance premiums from the HRA, I do not qualify for the premium tax credit.  There should be a Yes/No question in the software asking whether during any time in the tax year you had money in an HRA.  If you do, it should not attempt to apply the premium tax credit to your return.  Is there something already in the software that I've missed to handle this?  An HRA is very different from an HSA.