No, you do not have to report VEBA distributions as income. There are no tax penalties levied upon employees or VEBA members who
take distributions from a VEBA for qualified medical expenses which
often include copays, coinsurance and deductibles as well as dental and
vision payments.
However, because they are a tax free benefit, you cannot use the same medical premiums for medical expense deduction.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
