Hello,
I have an HSA through my employer for about a decade now. Back in 2020, the health insurance companies were waiving co-pays for some services, but my medical provider had my HSA card on file for auto-pay, so they kept charging me for each visit for months.
The medical provider would like to send me a refund check for the total amount overcharged to my HSA in 2024. How do I handle this from a tax perspective? I have other qualified, out of pocket medical expenses that I paid using personal funds (not the HSA) between 2022 and 2024 that exceed the refund amount I will receive. Will these paid out of pocket expenses offset the refund I will receive and I wouldn't have to report the HSA refund as a taxable event? How do you recommend I handle this situation. Thank you in advance!
