documentation

[NewPerson864]

Taxpayer lost the receipt for medications. Can he take a picture of the medications and use it as proof of the expense?

[MLINDER42]

documentation

Usually pharmacy can reprint bill.Most can give yearly statement.

[Burke]

As a matter of fact, this is almost universally the case. I tell my clients not to bring me all those little receipts any more -- get a print-out!

[erchess]

Picture

would not do because it would not show what he paid.

[MLINDER42]

Documentation

The yearly statements that I see usually have the total cost of medicine and the amount paid by client usually the co-pays.

[NewPerson864]

Usually pharmacy can reprint bill.Most can give yearly statement.

Thank you for everyone's answer.

There will be no printout or yearly statement because the medications are over the counter ones. They have already paid for it and now they want to be reimbursed by funds in their HSA account. But by doing so, I think they need some kind of documentation to prove that they have bought the medications. But they lost the receipts. So I am thinking if a picture will help. It's only about $20 anyway.

[BOB W]

Thank you for everyone's answer.

There will be no printout or yearly statement because the medications are over the counter ones. They have already paid for it and now they want to be reimbursed by funds in their HSA account. But by doing so, I think they need some kind of documentation to prove that they have bought the medications. But they lost the receipts. So I am thinking if a picture will help. It's only about $20 anyway.

Wasn't this expense paid with pretax dollars??? Isn't that double dipping? And I not even taking into account that the over the counter expenses are even tax deductible.................

[NewPerson864]

Wasn't this expense paid with pretax dollars??? Isn't that double dipping?

Sorry maybe I have not made myself clear enough.

They have paid for the medications with their after-tax money. Now they want to be reimbursed by their pre-tax money in the HSA account. And I think they need some kind of proof in order to do that. But they have lost the receipt. That's why I am thinking if they can use a picture.

[BOB W]

Sorry maybe I have not made myself clear enough.

They have paid for the medications with their after-tax money. Now they want to be reimbursed by their pre-tax money in the HSA account. And I think they need some kind of proof in order to do that. But they have lost the receipt. That's why I am thinking if they can use a picture.

So let me understand what you are saying>> Your client needs proof of purchase not for tax purposes but for reimbursement from an HSA account?

OK, I'm slow....... She/He would have to contact the HSA administrator.................

[NewPerson864]

So let me understand what you are saying>> Your client needs proof of purchase not for tax purposes but for reimbursement from an HSA account?

Yes that's correct.

They want to be reimbursed by their fund in the HSA account. But I think they need proof (for tax purpose) that they have really purchased the medications. So I am thinking if a picture will do it since they have lost the receipt.

[BOB W]

Yes that's correct.

They want to be reimbursed by their fund in the HSA account. But I think they need proof (for tax purpose) that they have really purchased the medications. So I am thinking if a picture will do it since they have lost the receipt.

They should contact the HSA administrator for required proof.........

[NewPerson864]

They should contact the HSA administrator for required proof.........

So they have to call the financial institution where they have the HSA account to inquire if a picture will do it? Well, I'd just forget about it. I have no idea why they have come to me for a $20 question anyway.

[joanmcq]

what a waste of time. in my FSA, you need the reciept. Tell 'em to buy more stuff. not even sure if OTC meds qualify for HSA reimbursement.

[Jesse]

If I'm understanding original post correctly,

They should contact the HSA administrator for required proof.........

HSA's are often just set up at your local bank as a regular checking or savings account with the account holder having complete control to make deposits and/or withdrawals of monies at any time. The receipts would be needed to substantiate that you indeed used the money for medical supplies to the IRS if audited, but not necessary for the withdrawal of funds.

So they have to call the financial institution where they have the HSA account to inquire if a picture will do it? Well, I'd just forget about it. I have no idea why they have come to me for a $20 question anyway.

No, I would say a picture will not due. You can buy the medical supplies, take a picture, and return everything within an hour - or a number of other scenarios. No receipt, no deduction, re-purchase supplies or recontribute the HSA funds if they are worried about the penalty.

[AuditorTurnedGood]

The receipts would be needed to substantiate that you indeed used the money for medical supplies to the IRS if audited, but not necessary for the withdrawal of funds.

Actually, I have seen cases where the bank administrating the HSA has requested substantiation of the expenses when an HSA debit card is used to be sure the purchaes qualify.

ATG