Author Topic: Insurance, HSA, and taxes  (Read 5924 times)


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Insurance, HSA, and taxes
« on: January 02, 2014, 04:00:09 PM »
Ok, question here:

My ex is the custodial parent and she claims all of them on her taxes each year.  I was just hired full time and have excellent benefits which includes an HSA program that my company pays a significant amount into ($2500/year) which mean the high deductible plan ($3000) is all but $500 covered.  My HR lady just informed me that the HSA will not cover my kids if I don't claim them on my taxes. 

The problem is the ex does not work, so she benefits very well come tax return season and has fought me every step of the way when it comes to claiming the kids on taxes. 

Has anyone been through something like this before???


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Re: Insurance, HSA, and taxes
« Reply #1 on: January 02, 2014, 11:49:27 PM »
I can't see I've been through a situation quite like the one you mention.  The first question that comes to mind is why would the HR department require that you claim the kids in order to get a benefit?  They are still your biological kids and you are court ordered to pay for them.  Are you sure your HR department has it right?  It would seem a court order would trump the requirement to claim them as dependents.

As far as child support goes, I assume you receive a deduction because you don't claim them?  While I think it's more common for parents to alternate the tax deduction annually, I've seen it done with a deduction plenty of times.  However, there's quite a few things to consider when you don't get to claim them, not only the deduction, but the child tax credit, and the ability to claim head of household and receive all kinds of tax credits for living in poverty (as it would appear on paper that she does), and supporting children.


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Re: Insurance, HSA, and taxes
« Reply #2 on: January 06, 2014, 05:15:11 PM »
I believe that your HR department is misinformed.

HSA's work like this:

1. You elect a withholding amount with your employer for health care expenses not paid by your insurance plan. This amount will show on your W2's as tax deductible income and will reduce the taxable wages reflected on your paystubs.
2. The third party management company processes your claims or your health care providers direct claims for expenditures directly from the account you have allocated to spend for You, your spouse and eligible dependents. (They do not have a right to request to see your tax returns)
3. Any amount you do not spend from the account by the end of the fiscal year is forfeited.