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-   -   Medical Payments from HRA? (https://www.daycare.com/forum/showthread.php?t=91926)

Mom2Two 06-03-2019 12:54 PM

Medical Payments from HRA?
 
Does anyone (like Tom) know if I pay a big medical bill this year but set up payments, can the payments be deductible from next year's hra?

Michael 06-03-2019 01:54 PM

Wondering if any of these threads would be helpful: https://www.daycare.com/forum/tags.p...tion+-+medical

TomCopeland 06-04-2019 11:19 AM

Hra
 
Quote:

Originally Posted by Mom2Two (Post 703729)
Does anyone (like Tom) know if I pay a big medical bill this year but set up payments, can the payments be deductible from next year's hra?

Yes, assuming you have an HRA plan in both years.

Mom2Two 06-04-2019 11:44 AM

Tom, I called that company and they told me that I did have to employ my husband. Wouldn't that cost me more money though, knwim? Wouldn't I/we end up paying into SS and medicaid?

TomCopeland 06-05-2019 10:17 AM

Hra
 
Quote:

Originally Posted by Mom2Two (Post 703821)
Tom, I called that company and they told me that I did have to employ my husband. Wouldn't that cost me more money though, knwim? Wouldn't I/we end up paying into SS and medicaid?

Federal law does not require you to pay your husband to set up an HRA. I won a US Tax Court case on this point. Some HRA companies (TASC for one) has its own rules and requires some salary be paid to a spouse, even though the law doesn't require this. If you pay your spouse you would have to pay SS and Medicare taxes, but that doesn't cost you much because you would otherwise pay these taxes on your profit. However, you may have to pay state and federal unemployment tax and get workers compensation insurance (depending on the state you are in), so these would be additional costs. You can compare these extra costs with the big tax savings of an HRA to see how much you would benefit.


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