Health Savings Account HSA
- What are unreimbursed qualified medical expenses?
- What is the definition of a first-time homebuyer?
- What types of homes will qualify for the tax credit?
- What if I built my own home?
- What is the difference between a contribution and a distribution in regards to my HSA?
- Do I owe taxes on the distributions from my HSA?
- Where do I find the total amount I contributed for the year to my HSA?
- Can I make contributions to my HSA after December 31, 2012?
- What amount should I enter for distributions from my HSA?
- What is a High Deductible Health Plan (HDHP)?
- Are contributions made by my employer included in my income?
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.
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.
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.
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