BillM223
Expert Alumni

Deductions & credits

Yes, this is a peculiarity of the IRS rules that say that you can take HSA reimbursements for prior year medical expenses (so long as the expenses were incurred after the date that the HSA was credited). They really didn't design Schedule A to accommodate this.

 

In this case, enter a miscellaneous medical deduction (at the end of the Medical and Dental interview) called "Adjustment for prior year HSA distribution" and enter the dollar amount of the amount HSA distribution for the prior year expense. This will return your total medical expenses to the correct number as if the HSA distribution was not subtracted out.

 

This will not print on Schedule A so  just make a note to yourself why you did this and save it in your tax file if anyone ever asks (unlikely).

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