115

The tax return of a dependent does not flow to the parents return. Earned income is taxed at your own rate, up to $12,000 tax free. for your own standard deduction, but unearned income is taxed at higher trust rates. No idea where they are getting this information from. If your parents' insurance is somehow tied to "family income," things change. It's still ...


92

As a contractor, I have done this exact calculation many times so I can compare full time employment offers when they come. The answer varies greatly depending on your situation, but here's how to calculate it: How much is your annual healthcare cost if you don't get it from your employer? A good place to start is healthcare.gov and look up plans that are ...


88

To be clear, this has nothing to do with tax brackets. (There's a longstanding belief that getting into a higher income bracket will increase taxes on all your income, when that bracket just applies to your new income.) Instead, this has to do with eligibility to (I believe) Apple Health, which is Washington's low-income health insurance program. This pdf ...


29

Waiting two years is weird. However it's possible that this whole thing got a 15-month "pause" because of the pandemic, and that would make the timing more plausible. Regardless, do not let this stress you out. It's just a normal and common billing snafu. Contact your (old) insurance company The old company will cover the claim because the event ...


24

No. Since 2014, the concept of pre-existing conditions affecting coverage or rates no longer exists in the US: Under current law, health insurance companies can’t refuse to cover you or charge you more just because you have a “pre-existing condition” — that is, a health problem you had before the date that new health coverage starts. These rules went into ...


24

In addition to Harper's answer, if the insurance company also gives you the runaround, here are some reasonable next steps: Write down everything. Focus on the facts; don't editorialize or write your opinions, just put down what actually happened. Keep any written documents which can corroborate your story. Keep talking to both the hospital and the ...


23

I feel like it's worth talking about the "tax bracket" part of this question, as it's a common misconception. Let's suppose we're dealing with a simple tax system with two brackets: 20% up to $100,000 a year, and 25% above that. Now let's say I make $98,000 a year and I'm taxed at 20%. That means I pay $19,600 a year in taxes. Now suppose that I get a $...


21

The big difference for me is that my contribution thorough a cafeteria plan also skips Social Security and Medicare taxes. That is a 6.2% (SS) + 1.45% (Medicare) tax on those contributions if done outside a cafeteria plan. Some companies make a contribution to a the HSA. If you handle your contributions outside of their channels they may see you as a non-...


21

There's an annual contribution limit, for 2019 it is $3,500 single/$7,000 family. Otherwise, it's fine to match future contributions to prior or planned qualifying expenses so long as the account was established before the expenses were incurred. There is no deadline for reimbursement, so if you have the procedure done now and pay out of pocket, you can ...


20

Yes, absolutely. The HSA, when used for medical expenses, allows you to essentially pay for your medical expenses tax free. Even if you don't have extra room in your budget, you can fund the HSA as you incur medical expenses, then withdraw money to pay the expenses, and you'll see an immediate tax benefit at tax time. However, let's say that you have ...


17

The FSA, in contrast to the HSA, is not an "account" that you put money in. FSA stands for "Flexible Spending Arrangement," not "Account." Technically, it is a defined-benefit plan. Here is the difference: With an account such as an HSA, you put money into the account, and you get that same money out. You can't take money out unless you first put money ...


14

Is it worth saving HSA funds until retirement? Yes Are there pros and cons from a tax perspective? Mostly pros. This has all of the benefits of an IRA, but if you use it for medical expenses then you get to use the money tax free on the other side. Retirement seems to be the time you are most likely to need money for medical expenses. So why wouldn't ...


14

From Wikipedia: In the context of healthcare in the United States, a pre-existing condition is a medical condition that started before a person's health benefits went into effect. So in your case, no, this would not be considered a pre-existing condition since she has had coverage since birth. A condition that was diagnosed while you're covered by ...


13

Can I pay myself back later in the year if my HSA doesn't have adequate funds earlier in the year to pay for an expense? Yes. You can request a distribution for any qualified medical expenses that were incurred any time after the HSA was established, there is no time limit. If you want to maximize tax-free growth you could pay everything out of pocket and ...


13

I just want to point out that your question implies a misunderstanding, even though you didn't explicitly mention it: I had an HSA last year. This year I have health insurance through ACA. The fact that you have insurance through the ACA may not be relevant. There are many plans in the ACA that are HSA compatible. But even if you don't currently have a ...


12

If you want the tax benefits of the funds, yes, they must be used for qualified medical expenses as defined by the IRS. You can withdraw funds whenever you want, for any reason, but if they are not spent on qualified medical expenses, then there will be tax implications. If you are under 65 years old, you will pay income tax plus a penalty on any ...


11

Here are the answers to your questions, from easiest to hardest. :) If I leave a HSA plan to join a PPO in the future does my saved money vanish? No, your money does not vanish. Your HSA is yours to keep. Even if you become ineligible to contribute to an HSA in the future, you keep your account, and you can withdraw on it for eligible medical expenses....


11

You need to understand why it was not covered. It's possible there's an error in the billing. This could be something as simple as a missing tax id number. Earlier this year claims codes changed from ICD9 to ICD10, that has caused some "denials" that were strictly related to an "incorrect" billing code. This could be a requirement for prior authorization....


10

Health Insurance/Private Medical Insurance in the UK is a luxury not a requirement The NHS in the UK is funded through National Insurance and general taxation that is taken from pay at source (generally), the amount of which varies by earnings of the individual. Access to NHS services is based on residency (if you live outside the UK but use NHS services ...


10

Yes, it must be for a qualified medical expense. Qualified medical expenses are those expenses that generally would qualify for the medical and dental expenses deduction. These are explained in Pub. 502, Medical and Dental Expenses. Also, non-prescription medicines (other than insulin) aren’t considered qualified medical expenses for HSA purposes....


9

There are few different things to consider: Deductible : Since you have an HSA you are probably on a High Deductible insurance plan. Take a look at your HSA balance and divide by your max out of pocket deductible. That's the number of years you are covered for the "worst case" scenario. I'd say you want at least ten, but 100 years would be excessive. ...


9

Because of some of the terms you used in your question I am assuming a US focused question. When you go to an in-network doctor, all the rates have been negotiated. That $157.64 reflects that. They also agree as part of the rules that they can't balance bill you. Which means they can't go after the $364.36 adjustment by charging you more. Now if you go out-...


8

Yes, you can. See the instructions for line 29 of form 1040. Self employed health insurance premiums are an "above the line" deduction.


8

Some doctors will give folks who are not covered by insurance a price break. If that describes you, you could ask. But if you didn't discuss the price in advance, that isn't the doctor's fault, any more than it would be the mechanic's fault if you asked for auto service without getting an estimate first. Consider it a cheap lesson in not making assumptions....


8

You should start by calling the clinic and asking them to tell you how the visit was coded. Some clinics have different billing codes based on the complexity of the visit. If you have one thing you are seeing the doctor about, that could be coded differently than if you have 4 things you are seeing the doctor about. In fact, even if you are there just for ...


7

For 2014, you will not get explicit documentation indicating your coverage. However, for 2015 (filing in 2016 calendar year), you should. From the IRS Health Coverage information page that Pete linked originally: This year [2014], unless a taxpayer purchased coverage from the Marketplace, many people will not receive tax information documents related to ...


7

I am sorry for your troubles. Presumably, you are feeling better which is the best possible outcome. You project that you are an honest person and desire to seek a fair outcome although you were mistreated. The insurance company should have paid a good portion of this bill. Because of this situation you will learn a valuable lesson. Namely that ...


7

As others have said, it depends entirely on what benefits are provided, and how much of the cost of those benefits is paid by the employer and how much is paid by the employee, and compare that to what it would cost to obtain the necessary/equivalent coverage without employer assistance. In my case, my employer pays more than $10,000 per year toward the cost ...


7

According to the IRS (look at the 11th question on this page) a nonresident alien is not covered by the individual mandate. If your wife has been in the country for less than 5 years on the F-1 visa, she is a nonresident alien. You will still need to file a W-7 to get an ITIN for her if you wish to file jointly with her. Some school insurance plans may ...


7

The expense occurs when you pay it, so the expense would be deductable for the year of that January. (Source: working with a tax accountant last year when I was in a similar situation. Disclaimer: I am not an accountant.) Additional source, IRS pub 502, at the end of page 2: You can include only the medical and dental expenses you paid this year, ...


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