Health Savings Account

[DrayChan 0]

Hello,

Through work I have a Health Savings Account towards my medical bills. Does anybody know if there are any medical bills for the AOS, and can I use this account to pay for them? The reason I ask is I have to claim how much to set aside (it is taken before taxes), before the start of a new year. Any experience with this would be really helpful. I like my money and would rather keep it than give it to the government.

Thanks,

Dar

[Gary and Alla 3,694]

Hello,

Through work I have a Health Savings Account towards my medical bills. Does anybody know if there are any medical bills for the AOS, and can I use this account to pay for them? The reason I ask is I have to claim how much to set aside (it is taken before taxes), before the start of a new year. Any experience with this would be really helpful. I like my money and would rather keep it than give it to the government.

Thanks,

Dar

First, regarding HSAs. You can use an HSA to pay for anything. ANYTHING. Groceries, new shoes, dinner at a restaraunt. BUT if you use it for anything but medical expenses you will have to pay tax on the money you spend. HSAs are "pre-tax" dollars, you are not taxed for money put into an HSA, either that you put in or your employer puts in UNTIL you spend it and if you spend it for unqualified things, you pay tax on it. The HSA was devised to give people a way to "dedcut" medical expenses from their income without meeting the 7.5% of income qualifier for the Schedule A. It is not a bad idea, good way to save taxes, particualrly for people with KNOWN, recurring medical expenses that are not covered by insurance (routine prescriptions, diabetic supplies, eye exams, etc.) IF you KNOW you are going to have, for example, $1000 in uncovered medical expenses per year for these items, why not put the money aside tax free?

That said, if her vaccinations are current and she had the medical exam there should be no medical expense for the AOS but it is possible she may need vaccines, etc. I cannot say. If she does, then YES it is a qualified medical expense and you can pay for it with an HSA and not pay tax on the money.

When you are married, be sure to list her on your company medical insurance and on your tax return for 2009 so you can claim expenses for her also.

[DrayChan 0]

Hello,

Through work I have a Health Savings Account towards my medical bills. Does anybody know if there are any medical bills for the AOS, and can I use this account to pay for them? The reason I ask is I have to claim how much to set aside (it is taken before taxes), before the start of a new year. Any experience with this would be really helpful. I like my money and would rather keep it than give it to the government.

Thanks,

Dar

First, regarding HSAs. You can use an HSA to pay for anything. ANYTHING. Groceries, new shoes, dinner at a restaraunt. BUT if you use it for anything but medical expenses you will have to pay tax on the money you spend. HSAs are "pre-tax" dollars, you are not taxed for money put into an HSA, either that you put in or your employer puts in UNTIL you spend it and if you spend it for unqualified things, you pay tax on it. The HSA was devised to give people a way to "dedcut" medical expenses from their income without meeting the 7.5% of income qualifier for the Schedule A. It is not a bad idea, good way to save taxes, particualrly for people with KNOWN, recurring medical expenses that are not covered by insurance (routine prescriptions, diabetic supplies, eye exams, etc.) IF you KNOW you are going to have, for example, $1000 in uncovered medical expenses per year for these items, why not put the money aside tax free?

That said, if her vaccinations are current and she had the medical exam there should be no medical expense for the AOS but it is possible she may need vaccines, etc. I cannot say. If she does, then YES it is a qualified medical expense and you can pay for it with an HSA and not pay tax on the money.

When you are married, be sure to list her on your company medical insurance and on your tax return for 2009 so you can claim expenses for her also.

Thanks for your quick response, As she has done medical overseas and got vaccinations, she shouldn't have any more, hopefully. Oh, yes, definitely she will be added. Thanks for the advise.

Dar

[Eric-Pris 1,602]

That said, if her vaccinations are current and she had the medical exam there should be no medical expense for the AOS but it is possible she may need vaccines, etc. I cannot say. If she does, then YES it is a qualified medical expense and you can pay for it with an HSA and not pay tax on the money.

What about the cost to have the I-693 completed by a civil surgeon? That's a cost that they will definitely have.

About HSA (or FSA)... it depends on how your company handles them. Do they reimburse you or the provider from the HSA? My company uses a company called WageWorks for our FSA (flexible spending account). We get a debit/credit card that we can use to pay for medical stuff. The problem is that many doctors (and almost all CS) still do not accept credit cards. Cash only.

With CS, it's even worse, only 1 out of like 50 that I called accepted credit cards, rest cash only... that's because it's tax-free, they don't have to report it as there's no record of the transaction. If they see 100 patients a year @$200 each, that $20,000/year tax free. Also, they will probably not go for the reimbursement deal. They want to get paid at the time of service. So if you can pay them, and then get reimbursed, that shouldn't be a problem. Get a good detailed receipt with the patient's name and date of service.

Edited October 1, 2009 by Eric-Pris

[Gary and Alla 3,694]

That said, if her vaccinations are current and she had the medical exam there should be no medical expense for the AOS but it is possible she may need vaccines, etc. I cannot say. If she does, then YES it is a qualified medical expense and you can pay for it with an HSA and not pay tax on the money.

What about the cost to have the I-693 completed by a civil surgeon? That's a cost that they will definitely have.

About HSA (or FSA)... it depends on how your company handles them. Do they reimburse you or the provider from the HSA? My company uses a company called WageWorks for our FSA (flexible spending account). We get a debit/credit card that we can use to pay for medical stuff. The problem is that many doctors (and almost all CS) still do not accept credit cards. Cash only.

With CS, it's even worse, only 1 out of like 50 that I called accepted credit cards, rest cash only... that's because it's tax-free, they don't have to report it as there's no record of the transaction. If they see 100 patients a year @$200 each, that $20,000/year tax free. Also, they will probably not go for the reimbursement deal. They want to get paid at the time of service. So if you can pay them, and then get reimbursed, that shouldn't be a problem. Get a good detailed receipt with the patient's name and date of service.

I did not use an I-693. It is not required for fiancee visas if they have a medical within one year of filing for the AOS and the DS3025 form. We submitted only the DS 3025 for my wife ans two sons...no problems.

FSA is not the same as HSA. In an HSA YOU own the account and have checks and/or debit card just like any other account. You and/or your employer deposit money to theis account tax free. You fill out special forms (don't make me try and remember the number of the form right now) and report all deposits and expenditures. There is no "reimbursement" like an FSA. I have an HSA and have used the debit card to buy groceries, clothes, gasoline anything. But I have to pay tax on the money spent for non-medical expenses. Oh well, I would anyway. I have done this when I did not have my regular debit card with me. I also use it to pay for things such as aspirin, band-aids, Q-tips, or any other over the counter medical supplies.

[DrayChan 0]

That said, if her vaccinations are current and she had the medical exam there should be no medical expense for the AOS but it is possible she may need vaccines, etc. I cannot say. If she does, then YES it is a qualified medical expense and you can pay for it with an HSA and not pay tax on the money.

What about the cost to have the I-693 completed by a civil surgeon? That's a cost that they will definitely have.

About HSA (or FSA)... it depends on how your company handles them. Do they reimburse you or the provider from the HSA? My company uses a company called WageWorks for our FSA (flexible spending account). We get a debit/credit card that we can use to pay for medical stuff. The problem is that many doctors (and almost all CS) still do not accept credit cards. Cash only.

With CS, it's even worse, only 1 out of like 50 that I called accepted credit cards, rest cash only... that's because it's tax-free, they don't have to report it as there's no record of the transaction. If they see 100 patients a year @$200 each, that $20,000/year tax free. Also, they will probably not go for the reimbursement deal. They want to get paid at the time of service. So if you can pay them, and then get reimbursed, that shouldn't be a problem. Get a good detailed receipt with the patient's name and date of service.

I did not use an I-693. It is not required for fiancee visas if they have a medical within one year of filing for the AOS and the DS3025 form. We submitted only the DS 3025 for my wife ans two sons...no problems.

FSA is not the same as HSA. In an HSA YOU own the account and have checks and/or debit card just like any other account. You and/or your employer deposit money to theis account tax free. You fill out special forms (don't make me try and remember the number of the form right now) and report all deposits and expenditures. There is no "reimbursement" like an FSA. I have an HSA and have used the debit card to buy groceries, clothes, gasoline anything. But I have to pay tax on the money spent for non-medical expenses. Oh well, I would anyway. I have done this when I did not have my regular debit card with me. I also use it to pay for things such as aspirin, band-aids, Q-tips, or any other over the counter medical supplies.

Correct, FSA is not the same, I had the FSA before the HSA and did not like it. It is the same concept, except that you set aside the money, and if you do not use it by the end of the year you loose it. The HSA, like Gary and Alla said, is yours, and apparently can be spent on anything, medical supplies or purposes to be tax free. I will have to try that out with my card and see if it works. If that is the case, I might put a little extra, in there for tough times. Thanks, Gary and Alla.