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echozoom
New Member

If the employee paid premium in Box 85 of my T4 was mostly reimbursed by my plan's health spending account , do I subtract the amount paid by the HSA in Turbotax or not?

 
4 Replies

If the employee paid premium in Box 85 of my T4 was mostly reimbursed by my plan's health spending account , do I subtract the amount paid by the HSA in Turbotax or not?

Claim only the portion of medical premiums you actually paid. If you are referring to medical expenses reimbursed over and above the amount recovered from insurance then claim the Box 85 and only any out of pocket medical expenses.

echozoom
New Member

If the employee paid premium in Box 85 of my T4 was mostly reimbursed by my plan's health spending account , do I subtract the amount paid by the HSA in Turbotax or not?

Thank you. I appreciate the answer. It is what I expected. However, I'm struggling with how to actually accomplish that in TurboTax. Maybe an example would help. Say that I have $500 automatically deducted from my pay in 2018 to cover the employee paid portion of my health insurance premium. Thus, Box 85 on the T4 prepared by my employer says $500. The insurance plan in question has a health spending account. Say my employer places $400 of "credits" into the health spending account and that money can be used for eligible health expenses. If you don't use the "credits" you lose them. One of the expenses you can "spend" on from the account is reimbursement of the employee portion of the insurance premium. So the insurance company reimburses me for $400 of the $500 that I paid for the premiums. Thus, according to what you are saying, the amount that should go into the medical spending portion of my taxes is the difference (i.e. 500-400=100). However, Box 85 on my T4 still says $500 because my employer has no knowledge of the $400 reimbursement. How do I account for that in Turbotax? I'm assuming I can't change just type in $100 in Box 85 because the T4 has been sent to the CRA.  

If the employee paid premium in Box 85 of my T4 was mostly reimbursed by my plan's health spending account , do I subtract the amount paid by the HSA in Turbotax or not?

Remove the Box 85 entry from Turbo Tax and only claim the net amount separately under Medical Expenses as a payment on Private Health Insurance Plan.
echozoom
New Member

If the employee paid premium in Box 85 of my T4 was mostly reimbursed by my plan's health spending account , do I subtract the amount paid by the HSA in Turbotax or not?

That makes sense. Thanks!