![]() ![]() If line 2 is less than line 1, go on to line 3.ģ.Subtract line 2 from line 1. If line 2 is equal to or greater than line 1, the cost of the improvement is not reimbursable. Ģ.The increase in the value of the home as a result of the improvement $_. The following worksheet may be used to determine the amount of a reimbursable capital expense.ġ.The cost of the improvement $_. Additional costs for personal motives, such as for architectural or aesthetic reasons, are not reimbursable. Only reasonable costs are considered medical care. ◾Re-grading the ground to provide access to the residence ◾Modifying areas in front entrance and exit doorways ◾Modifying fire alarms, smoke detectors and other warning systems modifying stairways ◾Installing porch lifts and other forms of lifts (but generally not elevators) ◾Moving or otherwise modifying electrical outlets and fixtures ◾Lowering or making other modifications to kitchen cabinets and equipment ◾Installing railing, support bars or other modifications to bathrooms ![]() ◾Widening or otherwise modifying hallways and interior doorways These improvements include, but are not limited to: If the improvement or modification does not increase the value of the residence then the full cost may be reimbursable. ![]() If the value of the property is not increased by the improvement, the entire cost of the improvement may be reimbursable. The amount reimbursable is reduced by any increase in the value of the property. Improvements or special equipment installed in the home may qualify for reimbursement if their main purpose is medical care. Cost of appraisal is not reimbursable and online appraisals are not sufficient (Zillow) as the actual capital expense must be considered in the appraisal. LMN required as well as an appraisal before and after the expense is incurred. See IRS Publications 502 and 969 for more details.Expenses for special equipment or improvements to a home are reimbursable if the primary purpose is medical care. Seeing eye dog ( buying, training and maintaining)ġ Restrictions may apply.Treatment for alcohol or drug dependency.face masks, disposable gloves, hand sanitizer, sanitizing wipes, etc.) Personal Protective Equipment (PPE) for the primary purpose of preventing the spread of COVID-19 (i.e.cold treatments, pain relievers, sinus medications, etc.) Over-the-counter (OTC) treatments containing medicine (i.e.You cannot use your HSA to pay for Medigap insurance premiums.Use your HSA to pay for the employee share of employer-sponsored healthcare premiums (provided that the employee share is not deducted pre-tax).Reimburse yourself directly from your HSA for Medicare premiums deducted from your Social Security payment.Given that Medicare does not cover all of your medical expenses, most HSA owners over age 65 continue to use their HSA funds for eligible medical expenses to ensure they receive the maximum benefits from their HSA.Īt age 65, you can use your HSA to pay for Medicare Parts A, B, and D as well as Medicare HMO premiums tax-free and penalty-free.Withdrawals made for other purposes will be subject to ordinary income taxes.In order to be both tax-free and penalty-free, the distribution must be for an eligible medical expense.Changes at Age 65 DistributionsĪt age 65, you can take penalty-free distributions from your HSA for any reason. Note: If you pay for anything other than eligible expenses with your HSA, the amount will be taxable, and you will be required to repay the amount and pay an additional tax penalty. You should keep all your receipts and pertinent documentation to prove your HSA was used for eligible medical expenses. ![]() How should I keep track of my eligible expenses? For the complete list of eligible and ineligible expenses, visit see IRS Publications 502 and 969. For more information, see the Medical expense eligibility tool. The HSA can only be used to pay for eligible medical expenses incurred after your HSA was established. Eligible expenses can be incurred by you, your spouse, or qualified dependents. An eligible expense is a health care service, treatment, or item the IRS states can be paid for without taxes.īelow is a partial list of eligible expenses that are reimbursable through a Health Savings Account (HSA). ![]()
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