You'll need to sign in or create an account to connect with an expert.
TurboTax expects the taxpayer to enter all medical bills (no matter how paid) in the Itemized Deduction interview (Federal->Deductions & Credits->Medical->Medical Expenses).
Then TurboTax does two things: (1) it asks the taxpayer for the amount of insurance reimbursement to net against the total medical bills, and (2) it carries the HSA distributions automatically to this process to net against bills paid with HSA funds. The result of which is only those bills that were paid with after-tax money, which may be deductible on Schedule A.
For taxpayers without an HSA, it doesn't matter if the taxpayer enters only the net medical expenses (i.e., net of insurance reimbursement), because in this case the effect is the same. But for HSA taxpayers, it's best to enter all medical bills in the Itemized Deduction interview.
TurboTax expects the taxpayer to enter all medical bills (no matter how paid) in the Itemized Deduction interview (Federal->Deductions & Credits->Medical->Medical Expenses).
Then TurboTax does two things: (1) it asks the taxpayer for the amount of insurance reimbursement to net against the total medical bills, and (2) it carries the HSA distributions automatically to this process to net against bills paid with HSA funds. The result of which is only those bills that were paid with after-tax money, which may be deductible on Schedule A.
For taxpayers without an HSA, it doesn't matter if the taxpayer enters only the net medical expenses (i.e., net of insurance reimbursement), because in this case the effect is the same. But for HSA taxpayers, it's best to enter all medical bills in the Itemized Deduction interview.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jello77
Level 3
srfrgyrl
New Member
4taxhelp
New Member
cparke3
Level 4
LadyDana
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.