Using HSA to Pay Medical Insurance Premiums

[rynlee]

Hello, I have been using my HSA account to pay for medical and dental insurance premiums.  Does TurboTax know how to reconcile this with my 1095-A, or do I manually need to account for this somewhere so that I'm not "double-dipping"?

[Opus 17 · Accepted solution]

You aren't allowed to use HSA funds to pay insurance premiums except in the following situations.

1. Long-term care insurance.

2. Health care continuation coverage (such as coverage under COBRA).

3. Health care coverage while receiving unemployment compensation under federal or state law.

4. Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

If your insurance does not qualify, then when your enter your 1099-SA, you have to say that your expenses were not qualified, and you pay tax and a penalty.  If your insurance does qualify, you will answer that you used the HSA for qualified expenses.  Turbotax does not directly link the premiums you paid on the 1095 to the distributions on the HSA.