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How to stop Turbo Tax from deducting my HSA paid medical expenses from medical expenses that I paid outside of my HSA?

 
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IsabellaG
Expert Alumni

How to stop Turbo Tax from deducting my HSA paid medical expenses from medical expenses that I paid outside of my HSA?

You can deduct the amounts that you paid for medical expenses that were not paid for by distributions from your HSA.

You can't deduct medical expenses that were paid with a health savings account (HSA), medical savings account (MSA), flexible spending account (FSA) or health reimbursement account (HRA). These are all pre-tax accounts, and you can't deduct medical expenses that were paid with a pre-tax account. This is handled in TurboTax.

You will receive a 1099-SA for your HSA distributions, and you’ll first enter that in the Federal Wages and Income section, under 1099-SA, HSA, MSA. You’ll be asked if you used the money for medical expenses, and if you did, none of the distribution will be taxable.

For your Medical Expenses, enter all of them in the Federal Deductions and Credits section, under Medical Expenses.

Break down the categories of expense as best you can. Just make sure that you don’t double deduct. Go through the entire section screen by screen. At the end, the distributions from Form 1099-SA will be subtracted from the total, and if you had medical expenses in excess of 7.5% of your Adjusted Gross Income, you will be able to claim a deduction.


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