HSA Plan Question

Discussion in 'Off-Topic' started by cycloner29, Mar 15, 2019.

  1. cycloner29

    cycloner29 Well-Known Member

    Dec 17, 2008
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    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!
     
  2. ISUguy

    ISUguy Member

    Jun 27, 2006
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    We actually had the exact same thing happen. Both girls had wisdom teeth out the same day. Gave them the insurance card and paid what they estimated we owed through HSA. We then got money back in the form of a check made out to me from the oral surgeon. When I asked they said they charged us full price but after running the insurance, they got a discount and passed the savings on to me. We did not think about needing to put it back in the HSA and just deposited the check. Not sure it was the right thing to do but never heard anything from anyone.
     
  3. flynnhicks03

    flynnhicks03 Well-Known Member

    Apr 11, 2006
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    We had the same deal with our son's orthodontist. We just cashed the check. That was two years ago.
     
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  4. throwittoblythe

    throwittoblythe Well-Known Member

    Aug 7, 2006
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    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.
     
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  5. Freebird

    Freebird Well-Known Member

    Apr 11, 2006
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    Didn't read the post huh?
     
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  6. JMA1125

    JMA1125 Active Member

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    Worst thing that could happen is that if you’re audited you’d have to pay taxes and penalties on the amount you received. I’ve received similar refunds and just cashed the check. The chances of being audited are low and the taxes/penalties would be relatively low so to me it’s not with the hassle of refunding it to the HSA plan.
     
  7. danielyp29

    danielyp29 Active Member

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    technically you should it back or pay some penalty/taxes for just cashing it, but the one time something like that happened for about $60, I ended up just cashing the check... I was told at one point to tell the doctor run everything through insurance first and have them send a bill after the procedure, and then pay that final amount with the HSA.
     
  8. DSMCy

    DSMCy Well-Known Member

    Feb 1, 2013
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    Agree with what other's have said.

    I'd put the money back in the HSA to get double credit for it.
     
  9. Tri4Cy

    Tri4Cy Active Member
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    I'm not sure that's what everyone is saying. You put the money back into the HSA but you shouldn't be claiming it as another deduction.
     
  10. danielyp29

    danielyp29 Active Member

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    there's a form for mistaken disbursement payback or something like that you have to fill out to put the money back in, this should not be a double credit

    https://money.stackexchange.com/questions/47303/how-do-i-correct-an-hsa-distribution-when-i-was-refunded-by-a-health-provider
     
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  11. DJSteve

    DJSteve Member

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    I agree; correct/legal practice should be returning the over-billed amount to the HSA account as a refund--reducing disbursement amount reported to IRS--not as a contribution. I've never had to deal with that situation, but I'd try to talk to someone at the financial institution where you have your HSA who really knows the rules/procedures (likely not an average teller).
     
  12. Sigmapolis

    Sigmapolis Well-Known Member
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    Might have to weigh it with the complexity of your filings, too.

    If you just take standard deduction, you're probably safe. Not really that much interesting for the IRS to look over. If more complex, you might need to worry about it.
     

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