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Category: Adjustments

What are "Qualified Medical Expenses" for an MSA?

When filing Form 8853 for an Archer MSA Deduction, you are required to figure the limitation that applies to you in regard to how much of a deduction you are eligible to report. The IRS provides a worksheet to calculate the amount of this limitation. It is located within the instructions for Form 8853. The link below is a link directly to the IRS instructions for Form 8853. Before filling out the worksheet, read the brief instructions for "Line 3" on page 3 by working through the Limitation Chart and Worksheet for each month of the year. These instructions list exceptions that can affect how the worksheet gets filled out. To ensure that the worksheet gets completed correctly, be sure to read the "Line 3" instructions.

The worksheet that must be completed is on page 3 of the instructions. Complete this worksheet and retain a copy for your records. Once this worksheet has been finished, you can properly complete Form 8853 for your Archer MSA Deduction. Form 8853 can be found within TaxSlayer by going to Main Menu > Deductions > Adjustments > Medical Savings Account.

Form 8853 Instructions and limitation worksheet

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