Medical expense deduction: is the amount paid through HSA account is considered out of pocket?

[ashokku]

I paid 2016 medical bills through HSA account and my personal credit card. So when I enter the out of pocket amount should I add "HSA + my credit card" amounts that I paid or just credit card amount .. please help, thanks!

[PaulaM]

Amounts paid via HSA funds are already pre-tax, so you would not deduct them again. Enter the after-tax amounts you paid with your credit card in the medical expense section of schedule A.

• In your open return, select My Account
• Tools
• Topic Search
• Type 'sch a, medical deductions' in the box, then select GO

[ashokku]

Thanks, but I see Turbotax is saying as follow - "Note: Be sure to include your medical expenses covered by your MSA/HSA distribution as medical expenses on the previous screens, but do not include amounts that will be reimbursed with distribution in a later year."

This gives me impression that I need to add the amount that I spent through my HSA account.

Please clarify.. thanks!

[PaulaM]

Let me check..

[PaulaM]

The page you described is asking for confirmation of your HSA distributions previously entered on a 1099-SA. If you entered a 1099-SA previously, then you are correct.

Enter the total medical expenses. The 1099-SA distribution amount will be subtracted from the total medical expenses and flow to the Schedule A, line 1. From that point, it is compared to your AGI and the deductible amount listed on line 4 of the Schedule A.

[ashokku]

Thanks a lot for your quick response. I also looked at the form schedule a 'Medical expense worksheet' and found that amount paid through HSA was being deducted from the amount paid through my credit card, which is not correct because overall amount I paid was = HSA+credit card. So, to make it correct, I have to add HSA amount as well so that correct equation could be = (HSA+credit card) - HSA. Thanks again!

[PaulaM]

You are welcome! The desktop versions do have advantages to viewing the flow of calculations from form to form/schedules/worksheets.