Qualified medical expenses for HSA purposes are unreimbursed (not covered by insurance provider) medical expenses that could otherwise be deducted on Schedule A (Form 1040). For example, if you have a $1,000 hospital bill and your insurance covers $800 and you use your HSA to pay for the $200 that you owe, then the $200 is unreimbursed medical expenses paid for by your HSA.
The definition of what constitutes a qualified medical expense is very broad and includes expenses to diagnose, cure, mitigate, treat, or prevent disease. However, cosmetic surgery is not deductible unless it is related to disfigurement from a congenital abnormality, accidental injury, or a disfiguring disease. Other examples of nondeductible medical expenses are nonprescription drugs, doctor prescribed travel for "rest," and expenses for the improvement of your general health such as a weight loss program or health club fees (the weight loss program is deductible if it is to treat a specific disease).
Examples of deductible medical expenses include abortions, acupuncture, alcoholism treatment, ambulance costs, birth control pills, child birth classes, chiropractors, contact lenses, crutches, dentist, dentures, doctor fees, drug addiction treatment, prescription drugs, dyslexia reading programs and tutors, eye examination and glasses, guide dogs, health insurance, hearing aids, hospital bills, insulin, laboratory fees, long-term care insurance, nursing home if for medical treatment, optometrist, osteopath, physical therapy, psychiatrist, psychologist, travel to medical clinics, vasectomy, and wheelchair. This list does not contain every medical deduction available.
The First-Time Homebuyer Credit is expired and no longer available in 2012.
A first-time homebuyer is a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the home ownership history of both the taxpayer and spouse are considered. For example, if you have not owned a home in the past three years, but your spouse has owned a principal residence, neither you nor your spouse qualifies for the First-Time Homebuyer Credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time homebuyer.
Starting in 2011, the First-Time Homebuyer Credit is only available to members of the uniformed services or foreign service, or an employee of the intelligence community, and on qualified official extended duty outside of the United States for at least 90 days between January 1, 2009 and April 30, 2010.
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses or condos, mobile homes, and houseboats.
The homebuyer tax credit is no longer available in 2012.
You still qualify for the credit. For purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated as having been purchased on the date the owner first occupies the home. If the home is built by a home builder, then the purchase date is the settlement date.
A contribution is an amount of money that you deposit into your HSA. A distribution is a withdrawal of funds from your HSA.
If you use the distributions from your HSA for eligible medical expenses, you will not pay taxes on them. Remember to keep a receipt for medical expenses paid for by a HSA. Any distribution that is not used for eligible medical expenses is taxable.
You should receive Form 5498-SA from the Trustee of your HSA. This form will show your contribution amount. You will need to contact the trustee of your HSA if you cannot find this form.
Yes. You can make contributions to your HSA to include on your 2012 tax return up until April 15, 2013. You will need to contact the trustee of your HSA to ensure that they credit your January 1, 2013 through April 15, 2013 contributions to the correct tax year. If you make contributions after December 31, 2012, your trustee should send you an updated Form 5498-SA that will include the new contributions.
The trustee of your HSA should send you Form 1099-SA. Your total distribution amount will appear on this form. You will need to contact the trustee of your HSA if you cannot find this form.
An HDHP is a health plan that meets the following requirements:
SELF ONLY COVERAGE:
Minimum annual deductible of $1,200
Maximum out of pocket expense: $6,050
Minimum annual deductible of $2,400
Maximum out of pocket expense: $12,100
Contributions to your HSA made by your employer are NOT included in your income. You can claim contributions you made and contributions made by any other person other than your employer on your behalf, as an adjustment to income. However, if you made employee contributions to your HSA plan as part of a cafeteria plan, then those contributions are already included in Box 12 of your W-2 (W2) with code "W" and are considered employer contributions. A cafeteria plan contribution already has reduced your Box 1 W-2 (W2) wages by the amount of any contributions you made to your HSA plan, so you are not eligible for a separate HSA Deduction on your Form 1040.