Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I am taking a leave without pay. So I will have a shortfall

in this year's contribution to...
I am taking a leave without pay. So I will have a shortfall in this year's contribution to several account: HSA (health savings account), 457 (b) (deferred compensation). There contributions are usually deducted pre-tax from my paycheck. Can I make up the shortfall by contributing to these account using my after tax money and later deduct it from my tax return? I also paid health insurance premium out of my pocket. The premium was usually deducted pre-tax from my paycheck. Can I deduct the premium payment from my income?
Thanks.
Show More
Show Less
Ask Your Own Tax Question
Answered in 13 minutes by:
10/20/2012
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,716
Experience: Taxes, Immigration, Labor Relations
Verified

LEV :

Hi and welcome to Just Answer!
You may contribute into HSA and deduct such contributions if otherwise you are eligible.
You may contribute into IRA account and deduct such contributions.
However you will not be able to deduct your contribution into 457b plan. If your plan allows direct contributions by employees - these contributions may not be deducted, but will be your cost basis in the plan - means - when eventually you will distribute funds - your after-tax contributions will be distributed tax free.

LEV :

In order to be eligible for a health saving account (HSA) you should be covered by the high deductible health plan (HDHP).
See IRS publication 969 - www.irs.gov/pub/irs-pdf/p969.pdf
To be an eligible individual and qualify for an HSA, you must meet the following requirements.
-You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month.
-You have no other health coverage except what is permitted under Other health coverage.
-You are not enrolled in Medicare.
-You cannot be claimed as a dependent on someone else's 2011 tax return
.

Customer:

I also paid health insurance premium out of my pocket. The premium was usually deducted pre-tax from my paycheck. Can I deduct my premium payment from my income? Thanks.

LEV :

If you are covered by a regular health insurance at your job - unfortunately - the only option to deduct medical expenses - as itemized deduction on schedule A.

Customer:

That will require medical expenses greater than 7.5% of my income, right?


 

LEV :

Yes - that is correct. The other option - to pay out of your HSA account using pre-tax funds - but only if you are eligible.

Customer:

So I can pay my insurance premium from my HSA account?


 

LEV :

Yes - health insurance payments are classified as medical expenses and may be paid out of HSA.

Customer:

If I end contract with my current employer (state), can I distribute 457b without penalty?


 

LEV :

There is no penalty if you are above 59 1/2 or disabled.
There are some other exceptions - otherwise the distribution is subject of 10% early distribution penalty.

LEV :

- withdrawals permitted after severance from employment
- must start receiving distributions by April 1 following the later of year of retirement or attainment of age 70 1/2
However - there is no IRS 10% premature distribution penalty tax on withdrawals from 457b nlan. The penalty would only apply (if you roll over non-457 money into the 457b Plan - that money is subject to the penalty. Sorry for confusion.

LEV :

Under a 457(b) plan, you also might be eligible for a hardship distribution (that can only occur when the participant is faced with an unforeseeable emergency). You do not need to end your contract to be eligible.

LEV :

An unforeseeable emergency is a severe financial hardship resulting from an illness or accident, loss of property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant or beneficiary. Examples of events that may be considered unforeseeable emergencies include imminent foreclosure on, or eviction from, the employee's home, medical expenses, and funeral expenses. Generally, the purchase of a home and the payment of college tuition are not unforeseeable emergencies.

Customer:

One last question, can I use Flexible Spending Account or HSA account to pay for post-tax dental plan premium?


 

Ask Your Own Tax Question
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,341
Experience: IRS licensed Enrolled Agent and tax instructor
Verified
Yes, you can use Flexible Spending Account or HSA account to pay for dental plan premium. It is a legitimate expense. Use Flexible Spending Account first, if you don't use the money you will loose them at the end of the year. HSA funds can be carried over to the next year. Everything paid with pre-tax money cannot be deducted, including employer sponsored health insurance premiums. Usually if you don't pay it with cash, check or credit card, you cannot deduct it.
Ask Your Own Tax Question
Health FSAs (flexible spending arrangements) are employer-established benefit plans - these may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Employees may not establish such plans with external organizations.
Thus - if your employer doesn't offer FSA or if you do not work - that option is not for you.

While you may NOT open FSA account through an external organization, still you MAY open HSA through an external organization.
To be eligible for HSA - either via your employer or at the external organization - you should be covered by the high deductible health plan (HDHP) - as outlined above.
If you are covered by a regular health insurance at your job - the only option to deduct ADDITIONAL medical and dental expenses - as itemized deduction on schedule A - www.irs.gov/pub/irs-pdf/f1040sa.pdf - line 1.

All qualified medical expenses may be reimbursed from FSA or HSA.
For a list of qualified medical expenses - see IRS publication 502 - www.irs.gov/pub/irs-pdf/p502.pdf
As you see dental expenses are included.
Let me know if you need any help.
Be sure to ask if any clarification needed.
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,716
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,716
30,716 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
In 2018 I had a medicare deduction ($134) taken from my
In 2018 I had a medicare deduction ($134) taken from my monthly deduction ($1971.00 less $134.00 ) but nothing was taken for Part D (drug plan). Last year they took $13.30 per month. Why didn't they t… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,312 satisfied customers
Does California allow you to deduct your individual/solo
Does California allow you to deduct your individual/solo 401k contributions on your state taxes? How about contributions towards SEP IRA?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
Are non insurance covered medical expenses deductible? Are
are non insurance covered medical expenses deductible? … read more
abci168
abci168
Principal
27 satisfied customers
What is the benefit of paying property taxes due in 2018 in
What is the benefit of paying property taxes due in 2018 in advance before the end of the year 2017, if the property owned is a rental real estate and the income passes through to the individual owner… read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Is the deduction for medical expenses on Schedule A repealed
Is the deduction for medical expenses on Schedule A repealed under the new tax law & can health insurance premiums for a Schedule C proprietor still be deducted on page 1 of Form 1040?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Can I deduct a medical expense in 2017 if paid in 2017 for
Can I deduct a medical expense in 2017 if paid in 2017 for my 2018 medical premiums . In other words, I am paying in advance.… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,084 satisfied customers
This is an income tax question. I am thinking of Deducting
This is an income tax question. I am thinking of Deducting next years giving to church this year with pending changes to tax law. As I recall, higher income levels reduce schedule allowable deductions… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Received a CP2000 from IRS on Retirement distributions I am
Received a CP2000 from IRS on Retirement distributions I am 54 years old and closed my retirement accounts when I became disabled I am on SSDI now and didn't think I had to pay the 10% penalty… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Dose mean can not deduct state income taxes only or dose it
dose mean can not deduct state income taxes only or dose it includes property taxes too … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is "Medicare Part" premiums deductable if so where do I find
Is "Medicare Part B" premiums deductable if so where do I find the proper question in Turbotax? I used Turbotax… read more
Wallstreet Esq.
Wallstreet Esq.
Tax Attorney
Doctoral Degree
586 satisfied customers
Are medical equipment purchesed tax deductable. I have been
I have been prescribed a portable oxygen generator is this equipment deductable … read more
abci168
abci168
Principal
27 satisfied customers
Is there a way to carry over medical expenses to subsequent
Is there a way to carry over medical expenses to subsequent years taxes? I know the answer is typically no but we will have very high expenses. Specifically, we will have roughly $1.5 million in medic… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Non grantor trust pays qualified medical expenses for
Non grantor trust pays qualified medical expenses for beneficiary. Since the trust can not deduct, are the expenses deducted on the beneficiary's 1040 as qualified medical expenses? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
525 satisfied customers
I am not filing schedule A for itemized deductions, but
I am not filing schedule A for itemized deductions, but would like to include sales tax in 1040 Form. Where do I put it? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Turbo tax states we need $8469 in medical expenses. We have
Turbo tax states we need $8469 in medical expenses. We have $10736.00 in medical expenses. Turbo Tax states we do not qualify, why?… read more
Lev
Lev
Tax Advisor
30,716 satisfied customers
Deductible medical expenses - I have two questions
Deductible medical expenses -Good Afternoon,I have two questions concerning medical expenses.1) If a doctor writes a prescription for a patient to hire a personal trainer to have him exercise x times … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x