Am I correct in that since HCRA's are from pre-tax dollars that the unused portion is not a deductible medical expense on the Schedule A? I want to print something for my client.
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do you mean HSA? -
Or do you mean HRA? HSAs don't have an "unused portion". HRAs are strictly employer funds, so they don't have an "unused portion" either; I'm sure the employer used it for other good purposes, but the employee can't deduct something that was never his.
FSAs do have an "unused portion", which is why they're called "use it or lose it". But your intuition is correct; since they're pre-tax, you can't deduct the unused portion. You also can't deduct the used portion.Comment
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Hcra
They are called Health Care Reimbursement Arrangements, also called HRA's. They are flexible spending plans, which do have the, "use it or lose it," idea. I already know the answer, but I wanted to be able to show my client something.
Thank you so much for your response.
-sherry-Last edited by SherryAnn; 03-01-2013, 01:32 PM.Comment
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