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AME9
Returning Member

AZ Medical and Dental Costs not carried over from federal input

Are rx eye contacts not considered qualified expenses to be claimed on a state return?

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5 Replies
BillM223
Expert Alumni

AZ Medical and Dental Costs not carried over from federal input

Did you enter other medical expenses on your federal return? Were they carried down to Arizona? So is this the only medical expense that was not carried down to the state return?

 

So far as I can see (pardon the pun), prescription contact lenses are deductible in Arizona.

 

What are the values for lines 1-4 on AZ Schedule A?

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AME9
Returning Member

AZ Medical and Dental Costs not carried over from federal input

I do not have an AZ schedule A with my state return based on how I input my taxes thus far.

I got a message that said "We checked, this deduction won't affect your taxes" after inputting all HSA and additional health care spending - which I expected of my federal return because the 7.5% of my income is greater than the amount of medical expenses that I input. 

 

Even though I have entered the amount of my distributions from my HSA (1099SA), they are not shown as medical expenses until I list the cost of each kind of expense...which I have not done. I think this is what would make the difference because when I put the entire amount of distributions as rx cost (just to see),  I'd get back $19 more from my state return. I just don't know if that's worth tracking down and breaking down every receipt/expense knowing what it went for when there are six of us using this HSA in our family.

 

I don't know that any of that made sense to you, but I think I got it figured out!

BillM223
Expert Alumni

AZ Medical and Dental Costs not carried over from federal input

As I guess you know, expenses paid from your HSA are not deductible on Schedule A. This makes it difficult for taxpayers with an HSA to every deduct medical expenses.

 

In fact, you may not be aware that TurboTax automatically carries the sum of the distributions from the HSA to the federal Schedule A and subtracts the sum from the various expenses entered on Schedule A (making it even more difficult to use Schedule A).

 

Of course, it is up to you how much effort you want to put into this.

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AME9
Returning Member

AZ Medical and Dental Costs not carried over from federal input

Thank you for the information - that makes sense. And I really don't want to put more into this:)

I do have a question - why would the total medical expenses (not paid for with HSA) be subtracted from HSA distributions? I must be missing something here, though my brain is a little frazzled from the last few days. 

KrisD15
Expert Alumni

AZ Medical and Dental Costs not carried over from federal input

In TurboTax, under Deductions & Credits, there is a Medical Section

In the Medical Section is "Medical Expenses"

 

The Taxpayer is encouraged to enter medical expenses paid in the tax year into that section.

The program will subtract any HSA distribution reported on 1099-SA from the total of the Medical Expenses entered. 

 

So, in other words, TurboTax expects the Taxpayer to enter all out-of-pocket medical expenses paid in the tax year and adjusts for HSA distributions. 

 

 

 

 

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