How does Turbotax treat a non-dependent covered by parental health insurance?

[gregholland]

My daughter is 25 and no longer a dependent, but is covered under my health insurance.  I have an employer provided plan with an HSA.  Does this mean she should answer "yes" or "no" to the "Do you have an HSA" question? Also, is there any special tax treatment for her situation?

[BMcCalpin · Accepted solution]

Who is the owner of the HSA?

HSAs are owned by an individual. If this HSA is yours, then she should answer "no".

She may be covered by your HDHP (health plan), but she is not covered by your HSA since she is not a dependent. (But see the section on Qualified Medical Expenses in IRS Publication 969).

In any case, she would answer "yes" only if someone set up an HSA for her.

There is no special tax treatment for her, other than she avoids the no insurance penalty, because she has health insurance.