Will health insurance/ health savings acct buy optics?

[dave_halsey]

I sure hope I'm not the first to bring this up but I can't find anything...

As a licensed hunting guide, I do spend a fair amount of time behind glass so really good quality glass is a must. Let's say an eye doctor is zeiss dealer for normal glasses( lenses), what's to say he or she can't prescribe some conquest 15x56 hd binos to a professional guide? My argument is that it is a work necessity and to preserve eye health, I need the best. Hopefully the doc has a swarovski and or leica hook up.

I'm not sure if insurance would cover the majority but I do have a health savings account debit card to go with it. Thoughts?

 

[fnlights]

Interesting thought. I can't speak for health insurance, but I am fairly certain that it is not an HSA eligible expense. I have a list of things that I can spend my HSA on through my provider and it doesn't even mention anything close to binoculars. Mine specifies optics as prescription glasses and contact lenses.

I would imagine that insurance would likely say the same thing.

 

[Rick Richard]

That is a great idea, however the only folks that will know the answer to your question is your insurance agent.… maybe it will be Flo form Progressive. Haha.

 

[FEENIX]

Interesting thought. I can't speak for health insurance, but I am fairly certain that it is not an HSA eligible expense. I have a list of things that I can spend my HSA on through my provider and it doesn't even mention anything close to binoculars. Mine specifies optics as prescription glasses and contact lenses.

I would imagine that insurance would likely say the same thing.

Ditto! My HSA is very specific in what they cover. They do not even cover replacement supplies for my CPAP machine.

 

[338weatherby]

The only argument would be preventative maintenance. I doubt your doc could push that for use with a HSA. My HSA plan is pretty specific but I have heard of others using funds towards things I wouldn't have thought were possible. I don't have a fund with AETNA but this article lists sunglasses and goggles as possibilities so who knows. Best to ask your insurance.

What do I do with an HSA?

Health savings accounts (HSAs) allow people with high-deductible health plans (HDHPs) to use pretax dollars for medical expenses. Learn about the “triple tax benefits” of HSAs..

www.aetna.com

 

[cohunt]

Some hsa/fsa "credit" cards will decline the transaction if it's not an approved item.

I doubt binos or a scope would be on the "approved" list of approved health expenses.

BUT -- I would worry more about explaining it to the irs agent if you were to get called up for an audit--- theoretically you have to keep all your receipts for health transactions for 3+ years agter filing a yax return --- and my tax man recommends 7- 10 years - but there are even certain circumstances where they could go back indefinitely.


You may be able to write it off as a work related tax deduction -- talk to your accountant about that one. There are some "gray" areas when it comes to interpretation of tax laws.

 

[choprzrul]

Which is cheaper.....buying the scope outright with funds from your bank account.....or paying a lawyer to go with you to the IRS audit?

 

[cohunt]

Which is cheaper.....buying the scope outright with funds from your bank account.....or paying a lawyer to go with you to the IRS audit?

I highly doubt it would trigger an audit--- but if he was randomly picked or called up for an audit for another reason it definitely wouldn't help the situation.

Like I said-- it could be a legitimate "business expense" for him and become a write off IF he has enough to itemize his deductions and he's not using the "EZ" form


Worse case scenario I would think would be if it was determined he used " pre tax funds" to pay for it and it wasn't an approved item-- he would owe the "income tax" for the $ used and possible penalty fees and intetest.

If I were him- I might pursue the "necessary business expense" question with his account

 

[fnlights]

I highly doubt it would trigger an audit--- but if he was randomly picked or called up for an audit for another reason it definitely wouldn't help the situation.

Like I said-- it could be a legitimate "business expense" for him and become a write off IF he has enough to itemize his deductions and he's not using the "EZ" form

Ultimately depends on his tax situation and how he is paid as a guide. If he is an independent contractor and files a Schedule C, then it would be a ordinary and necessary business expense for sure. The one kicker being if he is buying the Swarvorski or other expensive binoculars over $2,500, he likely would have to capitalize them as they are above the IRS de minimis safe harbor and have over one year of useful life.

If he is an employee and gets a W-2, then he really wouldn't get any deduction for it because the TCJA removed the unreimbursed business expense itemized deduction. Some states may allow him to claim a deduction for it - for example here in PA we can get a deduction even if it is disallowed federally - but we are only talking 3.07% instead of 20%+ federal.

As far as the audit - with most HSA's you will get a form 1099-SA issued to you when you take a distribution - which will be reported on IRS form 8889. Distributions that are not for qualified medical expenses are includible in income and subject to a 20% additional tax unless the distribution occurred after the individual became eligible for Medicare (i.e., age 65), or on account of the individual's death or disability. So, long story short, as long as the distribution is reported properly and the penalties and tax are ate, then the IRS would have no problem with it

and yes if you were wondering I am a tax accountant and a licensed CPA and just don't memorize random tax laws . Also, this was just me speaking from the top of my head, his and everyone's situation is different, so please don't take this as tax advise and make sure to consult with your accountant for your specific scenario!

 

[Varmint Hunter]

A friend, who is a Conservation Officer, had all kinds of work-related deductions knocked out by an IRS agent because they were considered "general use" items. In other words, he could have used the items for things other than work. Agents use a lot of discretion during an audit.

Didn't Biden just authorize the hiring of another 87 million IRS auditors? :>)

 

[fnlights]

A friend, who is a Conservation Officer, had all kinds of work-related deductions knocked out by an IRS agent because they were considered "general use" items. In other words, he could have used the items for things other than work. Agents use a lot of discretion during an audit.

Didn't Biden just authorize the hiring of another 87 million IRS auditors? :>)

Yep some IRS agents are just real stickler's about everything. Again, every situation is different, but in my opinion, a hunting guide using binoculars is like me using a computer as a CPA. Yes I could hand write everything on paper forms, but who in their right mind would do that lol - same as what guide would not have a set of binos. I feel that I would have a strong argument in this case, especially if this is his full-time job and what he does literally everyday. Now if I only guide 1 week a year, then yes I could see the general use argument.

Ultimately comes down to the burden of proof and if you are able to prove (substantiate) certain elements of expenses to deduct them.

Didn't Biden just authorize the hiring of another 87 million IRS auditors? :>)

YEP and the wave of notices and audits likely will be following . They are also dramatically increasing the audits on independent contractors and Schedule C's (self-employed).

 

[flyguy1]

YEP and the wave of notices and audits likely will be following . They are also dramatically increasing the audits on independent contractors and Schedule C's (self-employed).

I don't think that's correct. Didn't Biden say it's only for billionaires or something?