You've kept your daughter on your health insurance, because the coverage that her employer offers is more expensive. You're 60, your husband is 66, and you've got a 25-year-old daughter. Spouse on Medicare, young adult child on parent's HDHP It doesn't matter whether the person was covered under your HDHP, or even whether they had health coverage at all. Anyone you could have claimed as a dependent, but weren't able to because he or she filed a joint tax return (for example, your married teenage kid who files a joint return with his or her spouse) earned more than $4,400 (in 2022), or you (or your spouse, if you file jointly) could be claimed as a dependent on someone else's tax returnĪs long as the person is in one of the above categories, you can reimburse yourself for the cost of their qualified medical expenses with tax-free money from your HSA.Any HSA eligible dependents you claim on your tax return (your children, or a qualifying relative dependent) and any children who are claimed on your ex-spouse's tax return.Your spouse (regardless of whether you file taxes jointly or separately).In Publication 969, the IRS clarifies that you can withdraw tax-free money from your HSA to pay for qualified medical expenses for:

They don't have to be covered under the same health insurance policy you have, and in some cases you can't use your HSA funds to pay for medical care for a person who is covered under your policy. If you choose to use your funds to cover qualified healthcare costs, you might be a little fuzzy on whose medical care you can pay for with tax-free HSA money. Ultimately, it’s your call as to whether you choose to withdraw funds to spend on eligible health essentials, or have funds roll over, from one year to the next. With HSA’s triple-tax benefit, there are countless ways that you can use, or not use, your pre-tax funds: to supplement out-of-pocket expenses, use it as an emergency fund, reduce taxable income, or invest and grow as an extra retirement account. You can make tax-free HSA contributions as long as you have coverage under a qualified high deductible health plan (HDHP). You already know that a health savings account (HSA) is a great way to save for future healthcare costs.

Select account hsa qualified expenses