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01-05-2018 01:32 PM
I have and HSA account in which $240.00/month is contributed. I am filing single and have several out of pocket medical expenses I have paid (not from out of my HSA) and will be able to itemize this year. My questions is, should I go back and get billing and payment histories from all my doctors visits (IE Chiropractor, Eye Doctor) in which I paid from my HSA and add those into the deductions? Or do those not count since they were paid out of my HSA?
Thank you in advance for your input.
01-05-2018 05:45 PM
Welcome to the H&R Block community.
Bills paid out of your HSA do not count toward your itemized deductions because they were paid for with tax-free funds. In other words, you already received a tax benefit for those expenses by not having to pay tax on your HSA funds. Make sure you fill out Form 8889 for your HSA and report in Part II the amount of your withdrawls that you spent on medical expenses.
Anything else that you paid for out-of-pocket though is deductible on Schedule A. I would deduct all you can because some deductions will be limited on your 2018 tax return, however the medical expenses deduction is going to be nicer if you're under age 65. Starting with tax year 2017 the floor threshold has been lowered from 10% of AGI to 7.5% of AGI, so the medical expenses deduction is equal to your total expenses less 7.5% of your adjusted gross income.
You are not required to submit records of expenses to the IRS with your tax return. However, you will want to have a record of all of your expenditures for both the medical expenses deduction and the HSA that you can show the IRS if a question is ever asked.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)