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I am divorced and have my two minor children 50% of the time. I pay for their health insurance. Do I get the family maximum for HSA if I do not claim them as dependents?

Forum|Forum|5 years ago
March 12, 2021
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Best answer by Opus 17

The rules for medical insurance allow you to include your children on a family insurance plan if they are your dependents, or if they could be your dependents but are not because of the "special rules for children of divorced or separated parents."

So then, if you have a family HDHP that covers your children and qualifies for an HSA, you can contribute to the family maximum of $7100 for 2020 and $7200 for 2021, even if you don't claim them as tax dependents.

O

Opus 17Answer

Employee

The rules for medical insurance allow you to include your children on a family insurance plan if they are your dependents, or if they could be your dependents but are not because of the "special rules for children of divorced or separated parents."

So then, if you have a family HDHP that covers your children and qualifies for an HSA, you can contribute to the family maximum of $7100 for 2020 and $7200 for 2021, even if you don't claim them as tax dependents.

B

BillM223

The only question is do you have Family coverage on your HDHP policy? "Family" coverage is defined as you and at least one other person on the policy (even if that person is otherwise not eligible to have an HSA). Ask your insurance carrier if you are not sure.

As for you not claiming them, here are the people that you may spend money on from the HSA for qualified medical expenses:

"Qualified medical expenses are those incurred by the following persons.

1. You and your spouse.

2. All dependents you claim on your tax return.

3. Any person you could have claimed as a dependent on your return except that:

a. The person filed a joint return;

b. The person had gross income of $4,300 or more; or

c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2020 return.

For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption."

See IRS Pub 969 page 9.

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