What do I enter for the amount of MSA distributions used for Medical Expenses?

Only include distributions from your MSA that were used to pay for qualified medical expenses not reimbursed by insurance or other coverage that you incurred after the MSA was established. Don't include any excess contributions (or earnings for them), even if used for qualified medical expenses.

Qualified medical expenses are those incurred by the account holder or the account holder's spouse or dependent(s). Only prescribed medicines or drugs (including over-the-counter medicines and drugs that are prescribed) and insulin (even if purchased without a prescription) for the account holder or the account holder's spouse or dependent(s), are qualified medical expenses.

You can only treat insurance premiums as qualified medical expenses if the premiums were for:

• Long term care insurance,
• Health care continuation coverage, or
• Health care coverage while receiving unemployment compensation under federal or state law.

Note: You can't deduct medical expenses paid for from your MSA as an Itemized Deduction on Schedule A.