HSA and Medicare receipts

[RunningBum]

Another question regarding this: Since Medicare premiums paid out of an HSA are not deductible on Schedule A, does that mean that those that do pay them out of an HSA do not itemize?

Probably but not necessarily. If your deductible medical expenses are less than 7.5% of AGI, you wouldn't be able to deduct them but you might have enough other deductible expenses to itemize. Seems unlikely but possible.

Edited to add: Just for example, I itemized in 2017 when I had a lot of CG and Roth conversion income and also had a large charitable deduction to a DAF. I did not have enough medical expenses to cross over 7.5% AGI so I did not itemize those and I saved the receipts and will eventually pay them out of my HSA. They were Medicare premiums but there's really no difference. So maybe not so unlikely after all.

 

[cathy63]

Another question regarding this: Since Medicare premiums paid out of an HSA are not deductible on Schedule A, does that mean that those that do pay them out of an HSA do not itemize?

Lots of people itemize without using medical expenses. Especially for single people, $10K SALT plus mortgage interest and charity can easily exceed the standard deduction, even if they're over 65 and get the higher std deduction. It's much harder for married couples because the standard deduction is doubled but the SALT limit is not.

Also, I do a lot of returns where we itemize for the state but not for federal because our state standard deduction is low.

 

[Teacher Terry]

I have a hsa from my employer that gives me 195/month into my checking account. That helps because my total insurance costs on Medicare are about 400/month. It’s definitely a nice benefit.