Question re: HSA's and a couple of other questions..

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Grad467_2
Posts: 27
Joined: Wed Apr 15, 2020 6:57 pm

Question re: HSA's and a couple of other questions..

Post by Grad467_2 »

Good afternoon everyone. I have a question about HSA's. I am a commuter and I work for a US employer and I pay into a HSA to supplement out of pocket medical expenses. My question is when I use that pre-tax money to offset dental expenses, etc that are over and above the coverage provided by my employer, do I have to report this as income or do I have to deduct this from my over medical expenses that I want to claim on my Canadian return? My employer coverage is not the best so even though I do get some coverage for medical, dental, vision, etc and the HSA amounts do cover the difference of the amounts I owe post coverage, I still ended up paying out of pocket which I will claim (I do have all of my receipts) on 33099.

Also, I contribute to various coverage (medical, dental, vision, etc) that my employer offers (and the employer contributes also). I assume the pre-tax dollars I allocate into these plans are considered medical expenses and that I can report this on line 33099 (unfortunately I don't have a yearly summary document from the employer but my pay stubs show the amounts deducted bi-monthly which I assume would be proof I can supply the CRA if audited?)?

A couple of non HSA questions:

1) T2200S: I received a signed T2200S (Declaration of Conditions of Employment for Working at Home Due to COVID-19) from my employer. Is it worth the effort going the detailed route vs the flat $400 route, meaning, will I gain significant deductions by declaring expenses? To be honest, I don't have too many receipts and I have not purchased to many supplies. Also, I don't rent. Just as an fyi, I worked 66 days (or 30%) in the US in 2020 (our company gave us a basic worksheet to calculate using 220 days as employee work days for 2020). I had to move back into my mothers house in 2019 since she had become very ill so everything is under her name (utilities, internet, etc) but I do pay her ever month (when I get paid) in cash (so, no receipts). I was thinking of perhaps declaring vehicle expenses (mileage reimbursement) for the 30% of the time I did travel to the US for work thus the question.
2) Accidental Insurance: I pay into this additional coverage that my employer offers. I assume this (like other insurance premiums) are not deductible / can't be used towards a tax credit?
3) US refund: From my understanding for 2020, any refunds (federal, state and city), must be reported on your Canadian tax return (from my employer "Please note that the CRA Guidance requires any Commuter that later receives a refund of taxes paid to the U.S.
to amend their Canadian tax return and adjust the foreign tax credit claimed in Canada."). I assume this is considered 'other income' on my Canadian return or will I have to recalculate the foreign tax credit I will be claiming in Canada?
4) I will be using the method (now allowed) to file for my Canadian taxes from US sources which (from my understanding would be the same way taxes were filed for commuters in prior years). The CRA hasn't publicly stated the requirements for the 'Certificate of Coverage (“CoC”)' but my employer has stated that they would file this on my behalf if needed. Is there anything else I should do regarding this requirement?

Many thanks in advance for any information, clarifications, etc..
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Re: Question re: HSA's and a couple of other questions..

Post by nelsona »

HSA contributions must be added back to your wage income.

That is all I have time for right now.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Question re: HSA's and a couple of other questions..

Post by nelsona »

Refunds are not "reported", they go towards the reduction in your foreign tax paid. That is how you detetmine US tax, not jus tfrom withholding but withholding minus refunds.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Grad467_2
Posts: 27
Joined: Wed Apr 15, 2020 6:57 pm

Re: Question re: HSA's and a couple of other questions..

Post by Grad467_2 »

nelsona wrote:
> HSA contributions must be added back to your wage income.
>
> That is all I have time for right now.

Thank you Nelsona. So the pre-tax money I put into the HSA (the contributions) I have to add to my gross (pre-tax) income (if I understand you correctly)? I thought / assumed being that being the contributions are from me that this is tax free money and that when I did use this money (distribution) that this was not taxed (and I assume you mean the distribution / pay-out is what is added to my wage income which I would report only on my W2 as 'other income'?).

nelsona wrote:

> Refunds are not "reported", they go towards the reduction in your foreign tax paid. That is how you detetmine US tax, not jus tfrom withholding but withholding minus refunds.

So I would deduct my US refund amount from my foreign tax paid and report the not on my Canadian return? I assume their is no specific line item that I would enter the refund amount rather just report the net re: the foreign tax paid?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Question re: HSA's and a couple of other questions..

Post by nelsona »

HSA: i think you have the notion backwards. Because you are not allowed to deduct this from your income, youy are then allowed to claim any medical expenses that you incur that you get reimbursed from the HSA.

There is only one line for foreign tax on the tax return, and it is foreign tax paid, which means as calculated on your tax return, (which is the same as what is wuthheld minus what is refunded (or plus what you owe when you file).
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Grad467_2
Posts: 27
Joined: Wed Apr 15, 2020 6:57 pm

Re: Question re: HSA's and a couple of other questions..

Post by Grad467_2 »

nelsona wrote:
> HSA: i think you have the notion backwards. Because you are not allowed to
> deduct this from your income, youy are then allowed to claim any medical
> expenses that you incur that you get reimbursed from the HSA.
>
> There is only one line for foreign tax on the tax return, and it is foreign
> tax paid, which means as calculated on your tax return, (which is the same
> as what is wuthheld minus what is refunded (or plus what you owe when you
> file).

Thanks once again Nelsona. Can I also claim my contributions into HSA also as a medical expense or is this not allowed (being that the total reimbursed amount for the year is already claimed as a medical expense and because my contributions into HSA were pre-tax)? I guess what I am trying to get it is that I understand your comment but wanted to know if my HSA contributions can also be added as a medical expense (over and about the reimbursed amount) or is that "double dipping". Suppose I contributed $300 USD into my HSA account and used that all up for 2020. Can I claim $300 for reimbursed amounts plus my $300 HSA contributions as medical expenses or do I only claim the $300 reimbursed amount?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Question re: HSA's and a couple of other questions..

Post by nelsona »

You cannot claim the HSA contributions as a medical expense. You can claim the premiums you paid for the work medical insurance. You can claim the actual medical expenses that were paid by you either out-of-pocket or directly from the HSA.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Grad467_2
Posts: 27
Joined: Wed Apr 15, 2020 6:57 pm

Re: Question re: HSA's and a couple of other questions..

Post by Grad467_2 »

nelsona wrote:
> You cannot claim the HSA contributions as a medical expense. You can claim
> the premiums you paid for the work medical insurance. You can claim the
> actual medical expenses that were paid by you either out-of-pocket or
> directly from the HSA.

Just realized this after doing some further research (which is what I assumed). Thank you once again nelsona
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