Can we use HSA to pay back subsidies?

[BMcCalpin · Accepted solution]

If you are referring to the ACA or Obamacare Premium Tax Credit (PTC) (which is a subsidy for your health insurance premiums), then the answer is "no".

The HSA can be used to pay for only "qualified medical expenses". The PTC pays towards your health insurance premiums under the Affordable Care Act. Most health insurance premiums are not considered qualified medical expenses for purposes of an HSA. See the discussion on page 8 at https://www.irs.gov/pub/irs-pdf/p969.pdf