Have a Tax Question? Ask a Tax Expert
Hello, my name is ***** ***** I will assist you in answering your HSA questions
Your HSA money can be used toward insurance premiums, but only specific types, such as long-term care coverage, health coverage while you are unemployed, and federal health care continuation coverage, also known as COBRA. If you are 65 and older, HSA funds can also be used to pay for any health insurance, except Medicare Supplement policies.
Regarding your daughters health insurance premiums, are you currently supporting your daughter?
The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses.
I was speaking specifically to health insurance premium payments from an HSA and not day to day expenses paid from a HSA
Wasn't your initial question concerning health insurance premiums?
"I have a 25 year old daughter for whom I pay her health insurance premium -- or I should say I pay my ex-husband her health insurance premium"
Qualified medical expenses are those incurred by the following persons.
You and your spouse.
All dependents you claim on your tax return.
Any person you could have claimed as a dependent on your return except that:
The person filed a joint return,
The person had gross income of $4,050 or more, or
Insurance premiums. You can’t treat insurance premiums as qualified medical expenses unless the premiums are for:
Long-term care insurance.
Health care continuation coverage (such as coverage under COBRA).
Health care coverage while receiving unemployment compensation under federal or state law.
You are able to pay a dependents day to day medical expenses with funds from a HSA without penalty or including the payment in your income
Yes, as long as you or your spouse provided over 50% of her support and she did not file jointly( ie being married) with anyone else