Son had his wisdom teeth taken out a few weeks ago. He paid through his HSA plan. Yesterday he got like around $500 back from the oral surgeon. Would he have to put that back into his HSA or consider it like a regular check and just cash it? They only took 3 of his 4 wisdom teeth, so wondering if the might be the reason. He is going to get back with the oral surgeon to understand why he got it back. I've never had an HSA plan before so this something new to me. Anyone else have a similar type situation? TIA!
I apologize in advance for not having an official answer to your question. That being said, we've had similar things happen in the past. I use HSA money to buy contacts every year and there is always a rebate of $100-$150. They come in the form of gift cards, so it would be impossible for me to put that money back in the HSA.
I've never really worried about that as we would have to be audited to find that out, anyway. Plus, it would take some serious digging to find. Also, worst case is I have to pay income tax on that money so, like $20-$30.
Someone who is a CPA please correct this if it's wrong, but I believe that's his risk if he were to keep the $500. You'd be on the hook for income tax (may a 10% penalty?), IF your son would be audited. I also don't know if it would be considered a contribution if you put the $500 back.