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New Member
posted Feb 5, 2021 2:14:18 PM

The company I have retired from has medical spending account for former employees. I used that account to cover my medical expenses in 2020. How can I report that?

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4 Replies
Expert Alumni
Feb 5, 2021 2:35:35 PM

What kind of medical spending account is it? A retirement HRA? A health FSA?

 

How was the funding reported to you? What form?

 

Note that you do not report HRA or health FSA activities on your return.

New Member
Feb 21, 2021 1:56:40 PM

I used some of the money in the account to pay my medical premiums + other medical bills.

Where do I enter this in the medical part of my tax forms?

Employee Tax Expert
Feb 23, 2021 9:43:36 AM

In TurboTax, you can enter your medical expenses in the Federal section of the program. 

  1. Select Deductions & Credits 
  2. Select Medical 
  3. Select Medical expenses 

Be aware that you would only be able to deduct the costs if you are able to itemize your deductions as opposed to taking the standard deduction.

 

The deduction is limited to qualified medical expenses which exceed 7.5% of your Adjusted Gross Income. 

 

Article outlining medical expenses

Level 15
Feb 23, 2021 10:11:15 AM


@elong wrote:

I used some of the money in the account to pay my medical premiums + other medical bills.

Where do I enter this in the medical part of my tax forms?


You have to tell us more about the kind of account.

 

A "health reimbursement arrangement" (HRA) is funded entirely by the employer.  The employer may pay or reimburse qualifying expenses, but may not pay leftover funds to the employee under any circumstance.  The employee is not allowed to contributed anything.  The employer funds the account with a set dollar amount at the beginning of the year.  Ununsed funds can either carry forward to next year, or return to the employer, at the employer's choice, but can never be paid to the employee without a qualifying expense.

 

If this is an HRA, you don't report anything on your tax return.  The reimbursement is not income, and you can't list reimbursed expenses as deductible medical expenses.  

 

If this is some other kind of arrangement such as an HSA (health savings account) or something else, you may receive a form 1099-SSA to report your reimbursements.  That must be reported.