Due to large amount of medical bills incurred for my wife and we chose to file separately this year for the medical tax deduction. I have an HSA family policy with my employer that I used distributions for some covered medical expenses for my wife and I. As we are filing separate the question I have is who reports the 1099-SA amount? Do we each report how much of the HSA distribution we used on our own tax return or do I report the whole amount and we both report the full amount of medical expenses (out of pocket/non HSA distributions plus HSA distributions) on our tax return. My medical bill portion is significantly less than the HSA distributions on the 1099-SA. My wife's portion is the majority. If we both report the full amount of medical expenses and only I report the full HSA distribution according1099-SA, will the IRS think that some of the HSA distributions were not used for medical expenses even though the remaining amount were used for my wife's medical bills. Do they take into account her medical bill expenses when they look at the whole 1099 HSA distribution amount?
