How to handle HSA reimbursements?

Tim13

I write an $88 check for a dental bill.  Then I get a check in reimbursement from my Health Savings Account, which I enter as a transfer from my HSA to my checking account.  Is there now a way to show in my "medical-doctor" category that this $88 has been reimbursed?  I think it required a journal entry in Quickbooks (it's been years since I used QB), but maybe this isn't possible with Quicken?

jacobs

@Tim I think the piece of the equation you're missing is how the money originally got into your HSA account. Was it a payroll deduction? If so it can't offset your check to the dentist, because that would make the money you were paid disappear entirely. The paycheck deduction to fund your HSA was a transfer coming from your gross pay, right? Then what happened is you paid out of your HSA account to go to the dentist -- except that was a two-part transaction: the check from checking, and the transfer out of HSA into checking to replenish your checking account. But it's still $88 of your money paid to the dentist; you need to have the dental expense.

John_in_NC

Thanks for the clarification.

With a HSA, I agree with jacobs in that you did spend the $, and that you want to show that as an expense. But, in the case of an HSA, that is your money, no matter how it got into your account (employer or self contributions)

I don't know the specifics of your Flex Plan, but you might wish to look more into how it is classified so that Quicken can represent real world transactions in the best way. If your dental visit is getting comped and you pay nothing, then the check deposited would be a + amount to the same category "medical-doctor". This would keep it off reports. There would be no transfer. The sticky point is if you track this as an account in Quicken-you claim you aren't spending anything, but I really think you are. 

John_in_NC

I think you are overthinking this or letting QBs confuse you.

You have the transactions setup correctly, assuming the check you wrote is what is marked as "medical-doctor." The check reimbursement is really just a transfer like you have setup: you are moving money from the HSA over to checking. 

You aren't reimbursing the "Medical-Doctor" category. You spent $88 at the dentist, and that is who it will show up on reports, etc. Don't let QB tempt you into thinking that categories are accounts you are moving $ into and from. They are not.

Tim13

I guess my expectation is that a category report will show a net figure.  Currently, if I were to run a tax report, it would show I spent $88 at the dentist, when in fact, after reimbursement for that $88, I spent zero.

jacobs

@Tim I think the piece of the equation you're missing is how the money originally got into your HSA account. Was it a payroll deduction? If so it can't offset your check to the dentist, because that would make the money you were paid disappear entirely. The paycheck deduction to fund your HSA was a transfer coming from your gross pay, right? Then what happened is you paid out of your HSA account to go to the dentist -- except that was a two-part transaction: the check from checking, and the transfer out of HSA into checking to replenish your checking account. But it's still $88 of your money paid to the dentist; you need to have the dental expense.

Tim13

Good point Jacobs.  This is a small account, actually called a "Flex Plan" (which may not actually technically be an HSA, I don't know).  It's not funded from payroll deductions, but from small contributions from certain employers, per a union contract. So the money in the account is essentially additional income, not my money.

John_in_NC

Thanks for the clarification.

With a HSA, I agree with jacobs in that you did spend the $, and that you want to show that as an expense. But, in the case of an HSA, that is your money, no matter how it got into your account (employer or self contributions)

I don't know the specifics of your Flex Plan, but you might wish to look more into how it is classified so that Quicken can represent real world transactions in the best way. If your dental visit is getting comped and you pay nothing, then the check deposited would be a + amount to the same category "medical-doctor". This would keep it off reports. There would be no transfer. The sticky point is if you track this as an account in Quicken-you claim you aren't spending anything, but I really think you are. 

Tim13

Thanks to both of you!