Saving for the future is easier when you take advantage of the benefits that a health savings account provides. Your tax-free investments earn interest the longer they stay in the account, and you can use the money without having to pay taxes on it as long as you spend it on IRS-approved health care items and services. This HSA account FAQ can help you determine who is covered when you need to pay a health expense.
Does Our Tax Status Impact My Spouse?
Your spouse is covered under your HSA even if you file your taxes separately. You’ll also find it helpful to know that you can use your HSA funds on your spouse if they have a separate health account. Keep in mind, however, that you and your spouse have a shared contribution limit even if you have individual HSA accounts.
Can I Use HSA Funds for My Senior Parents?
If your parents lived with you during the year and you provide for the majority of their needs, then you can also use your HSA funds to help with the cost of their health care. In this instance, your senior parents fall under the guideline of being a qualified dependent. This can also apply to other people in your home such as an aging grandparent.
When Are My Children Covered?
Changes in a person’s family dynamics frequently lead to one of the most popular HSA account FAQ posts. Adult children who have moved out of your house may still be considered a qualifying dependent if they are covered under your health insurance. You can also claim your children even if they are claimed on your ex-spouse’s tax return. Step-children also fall under the category of being a qualified dependent.
Many people are unaware that they can use their HSA funds for people who are not their direct children or dependent spouse. Knowing when and how you can use your funds helps you to rely on them when you face health care expenses while being able to take advantage of those important tax-saving benefits.
Read a similar article about HSA perks here at this page.
