Can I use HSA for my child who is dependent of my ex and is not covered by my insurance?

[nestlen]

My daughter lives with my ex in another state. We have divorced for 4 years and on the divorce decree mom had full custody but in past few years I actually had around 30% of of  my daughter's time each year. 

I don't claim my daughter as dependent and her medical care premium is also covered by the mom (she turns to me for half of that each year). 

I am filing single and my medical insurance ONLY covers myself.

My questions are:

1. Can I use my HSA account to reimburse expenses (co-pays etc.) for my daughter in this case (not covering her medical care and she is not my dependent).

2. When turbotax asks 'type of HDHP coverage' in past year, should I choose 'self-only' or 'family plan' (the limit would be different). 

3. In case I am not eligible to use HSA reimbursement for my daughter but have already done so. What should I do to correct that?

[Hal_Al · Accepted solution]

Yes, you may claim expenses paid for your non-dependent child. From publication 969 (HSAs):

  Qualified medical expenses are those incurred by the following persons.

1. You and your spouse.

2. All dependents you claim on your tax return.

  For this purpose, a child of parents that are divorced.....is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption.

Choose "self only", as you are not entitled to the higher contribution limit.

[nestlen]

thanks for quick and clear answer. appreciate it!

[Bw1158]

Same question/scenario, but different circumstances. Rather than divorced, we file taxes seperately. Our first child is on it's way and I'd like know if I can use my HSA for my child's furture medical expenses, even tho said child will likely be on my wife's insurance and will be claimed as my wife's dependent? I'm trying to figure out if filing seperately somehow forgoes my HSA privileges? Thank you

[VictoriaD75]

Filing status is irrelevant to using HSA funds. Per the IRS, HSA funds can be used for qualified medical expenses.

Qualified medical expenses are those incurred by the following persons.

1. You and your spouse.

2. All dependents you claim on your tax return.

3. Any person you could have claimed as a dependent on your return except that:

   1. The person filed a joint return,

   2. The person had gross income of $4,200 or more, or

   3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2019 return.

Pub 969 Tax-Favored Health Plans

[Hal_Al]

@VictoriaD75  - That seems to say, by omission, that he cannot claim expenses  paid for a child claimed on his spouse's separate return???

I don't know the answer.  What I do know is that the MFS rules are restrictive, sometimes down right punitive.  So, they may be correct.