How to fix parent HSA payments for child that should have been paid by other means?

[RonandDeb]

Hello!

I was surprised to find out that I should not have paid child medial bills with my HSA account in 2025 (and start of 2026).  For 2025 taxes, my child is no longer a tax dependent . 

My plan is to refund the amount of total 2025 child HSA payments (as a mistaken distribution) back to my HSA before filing my 2025 taxes. Then print out the matching 2025 bills and give that to my child so they can submit them to their HSA sometime in the future.  I'll do same for 2026 mistaken payments. 

I expect that there will be no tax impact for this mistake that I am fixing. 

[Mike9241]

Make sure that you complete the proper forms for the HSA, so it knows that they are for mistaken distributions. Your son cannot use the HSA to reimburse medical expenses incurred before his HSA was established. 

[RonandDeb]

Mike,

That makes perfect sense.  I should I known that. 

I think we can open a HSA account now, then contribute only $8750 * 2/12  because he will age out of my family high deductible insurance in just over 2 months.  That money can be used for eligible costs from now until money runs out. Only after he has his own high deductible insurance can more funds be deposited. 

1) Fundable only when HD health care active.

2) Useable regardless of insurance plan.  

[RonandDeb]

Per Google AI, Yes, you can make 2025 tax-year contributions to an HSA opened in January 2026, provided you were enrolled in a qualifying High-Deductible Health Plan (HDHP) during 2025. These contributions must be made by the tax filing deadline, typically April 15, 2026, and cannot exceed 2025 limits ($4,300 self/$8,550 family, plus $1,000 for age 55+).

Lot of money can go in; sadly no tax savings because son's federal tax is zero, thanks no tax on tips. HSA is an deduction not a credit.