This is my first year doing taxes with medicare premiums. I will be reimbursing myself for parts B & D from my HSA. Premiums from 2020 will be reimbursed on 2021 taxes and so on. I'm using TurboTax deluxe PC version with Missouri state return. My medicare supplement premiums will qualify for a deduction on the state return. The medicare parts B & D won't because I'm going to reimburse myself for them from my HSA. When I enter my SSA-1099 TurboTax has boxes to enter the part B & part D premiums deducted from my SS benefits. The only way I could get the part B & D premiums from NOT carrying over to the state return was to leave the 2 boxes on the SSA -1099 blank as if they didn't take any premiums out. Doesn't affect the federal return and makes my deduction correct on the Missouri return. Anyone one else run into this problem? TurboTax should have it set up better in my opinion.
for the months you have medicare you can't have an HSA contribution. an HSA can not be used to pay insurance premiums. that includes Medicare, B, C, and D. there is an exception for specialized insurance like dental, vision cancer coverage. any HSA distributions used to pay non-qualifying expenses is subject to a penalty. any excess HSA contributions not withdrawn by 4/15/2021 are subject to penalties.
you need to read IRS PUB 969
if you don't understand it, you need to upgrade TT to talk to a pro or use and outside professional.
I know all the rules. I haven't put anymore in my HSA since I went on medicare. Your allowed to reimburse yourself for medicare parts B, D premiums and any other qualified expenses. You can't use HSA funds for medicare supplement premiums which is why I'm taking the deduction for them on my Missouri taxes. My post was in regard to the way TurboTax handles it.