Can I use my HSA for my girlfriend?

by Guest » Wed Feb 27, 2013 01:59 pm
Guest

Will my HSA pay bills for live-in girlfriend, who is more or less financially dependent on me?

Total Comments: 3

Posted: Wed Feb 27, 2013 03:16 pm Post Subject:

Only if your girlfriend is a "registered domestic partner" in certain states which recognize such relationships. California is one.

Simply living together is not sufficient, even if she is "more or less" dependent on you. Make her truly dependent by marrying her.

Posted: Thu Feb 28, 2013 09:44 am Post Subject: HSA pays for girlfriend as qualifying relative

You'll be able to pay her bills if she fits the bill as your 'qualifying relative' according to the IRS regulations. You can find the eligibility details at:
www.irs.gov/pub/irs-pdf/p502.pdf

Posted: Thu Feb 28, 2013 02:25 pm Post Subject:

The link above has to do with "deducting" medical expenses, not HSA payments. An HSA is a companion to a high deductible health plan (you cannot contribute to an HSA if you do not have a HDHP).

Medical expense deductions are only available to the extent they exceed 7.5% of Adjusted Gross Income. That's a different discussion entirely.

Apparently, thanks to Obamacare, it appears that the IRS has adopted a new definition of "Qualifying Relative" which now includes

Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law,

Who was not a qualifying child of any taxpayer for 2012, and

For whom you provided over half of the support in 2012.


Having said that, HSA money cannot be used in its tax-deductible form for anything that is not a qualified medical expense. For example, it cannot be used to pay for over-the-counter medications or birth control devices (condoms, non-prescription contraceptives) unless prescribed by a doctor. Nor can it be used to pay for "bills" such as food or clothing, electric toothbrushes, cosmetics, etc..

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