Clover5
Recycles dryer sheets
- Joined
- May 4, 2013
- Messages
- 78
From Florida Blue I can download all the claims going back to the start of the plan in 2020. Is that adequate proof or do I need all the Walgreens and Dr receipts too?
The IRS Provides this Guidance:
You must keep records sufficient to show that:
For reference, see IRS Publication 969 (Health Savings Accounts > Deemed Distributions from an HSA, under "Recordkeeping")
- The distributions were exclusively to pay or reimburse qualified medical expenses,
- The qualified medical expenses had not been previously paid or reimbursed from another source, and
- The medical expenses had not been taken as an itemized deduction in any year.
- Do not send these records with your tax return. Keep them with your tax records.
Follow These Steps
Keep records of all HSA documentation for as long as your income tax return is considered “open” (subject to an audit), or as long as you maintain the account, whichever is longer.
Hold on to any insurance carrier’s Explanation of Benefits (EOB) statement that documents your expenses for services covered under your HSA-eligible health plan.
Keep receipts for all other items purchased with your HSA, for example, vision and dental services.
- Keep records of all HSA documentation for as long as your income tax return is considered “open” (subject to an audit), or as long as you maintain the account, whichever is longer.
- Hold on to any insurance carrier’s Explanation of Benefits (EOB) statement that documents your expenses for services covered under your HSA-eligible health plan.
- Keep receipts for all other items purchased with your HSA, for example, vision and dental services.
https://employee-resources.lumity.c...not prove was for a qualified medical expense.
That said, I built up and spent my HSA over the course of about 15 years, and no one ever asked me for any proof whatsoever. YMMB
This is the first time I've heard of anyone being asked to show the receipts. I'm glad to know the little bit of time I take to organize them each time I have a receipt is worthwhile in case I'm ever asked. Did you have to mail them copies, or email images, or show them in person?All I do is save my receipts. I write on them the date incurred, and note theywerent charged to HSA. Then when I cadh them in i write anither note on the receipt indicating that date. When IRS asked to see them in 2010 this was sufficient.
This is the first time I've heard of anyone being asked to show the receipts. I'm glad to know the little bit of time I take to organize them each time I have a receipt is worthwhile in case I'm ever asked. Did you have to mail them copies, or email images, or show them in person?
This is the first time I've heard of anyone being asked to show the receipts. I'm glad to know the little bit of time I take to organize them each time I have a receipt is worthwhile in case I'm ever asked. Did you have to mail them copies, or email images, or show them in person?
If you use your HSA to pay for medical expenses in the year they occur there is very little chance of the IRS asking for proof, that's what I've done for the past 12 years and never had to show proof. If you were to collect your receipts over a number of years and cash them in all at once it could raise a red flag with the IRS, especially if it's a large amount.
I've wondered how long I need to keep the receipts after I pull HSA money out.
The statute of limitations is 3 years for Fed. So I would keep the receipts until the statute closes. If your state treats the HSA the same as Fed, confirm the length of your state’s statute as well. Some states are 4 years.
That would be 3 years from receiving the HSA distribution, not incurring the charge.
You never know, you might need/want $37K tax free next month. I like having these funds available just in case.I have paper folders with receipts and EOBs going back to 2006 - first year when we started HDHP with HSA. But wondering if keeping those even worth the hassle- we never took any money out and use HSAs as additional saving vehicle for retirement. We have $180k currently saved and receipts for $37k. I do not mind to send IRS boxes of paper to prove that I have right to take those $37k out based on past spending, but keep thinking that most likely money in HSA will be spent on newly incurred charges during retirement, so that paper keeping may be pointless.