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Tom, i have been meaning to set up an hra but my tax person wasnt excited or seemingly willing to wirk with me ( seeking new tax person for next year). Anyway, is it too late in the year to do so? Are there penalties for waiting til september? Would i be able to claim the stuff from the year to date as well? Lastly, does this includecthe insurance premiums my husband pays at work? Thank you

Danielle Charlson

Does this work still if my husband has health insurance benefits through his work place and has a flex medical spending account as well. Not that you can double dip but we always spend more than he can flex in a year. 3 kids with braces, one with speech that cost 300 a month after insurance..it doesn't take long. Can I still do this for my family.

Tom Copeland

You can't include within an HRA money used with the flex medical spending account. You can use the HRA for health expenses outside of the flex spending account.

Tom Copeland

Lori - You can only start deducting medical expenses after the HRA is set up. You can start it during any month - no penalties for when you start. Yes, you can include medical insurance premiums paid by your husband at his work.


Hello Tom,
My question has to do with rates during the school year. I have been taking care of a 3 year old for about a year and she started preschool this past week. She goes twice a week, 3 hours each day. The parents asked a couple of months ago if I'd lower their fee but I told them no b/c they're using a fulltime position and they replied that we could discuss it more as we get closer. Well, here we are and they want to know again. Is it fair of me not to reduce their rate?

Tom Copeland

You are always entitled to set your own rates. It's still logical to argue that the child still takes up a full time space. You can say you are not willing to fill one full time space with two part time children. You can also decide to charge her less, based on a part-time rate, but your part-time rate is higher on an hourly basis than your full time rate. It's up to you. There is no right or wrong way to handle this.


Hello Tom,
I just wanted to verify which expenses can be deducted if this plan is set up at this point in the year. When I called TASC to discuss the options for my husband's and my businesses, I was told that we would be able to deduct premiums paid back to the beginning of the year; but that we would only be able to deduct out of pocket costs starting at the first of the month that we set up the HRA. I see you stated that we could only deduct what was paid out after the HRA is set up. Before I get this all set up I just wanted to clarify what is the correct answer just so I can get a good feel for what we would save in taxes.


We have family health insurance thru my family child care business so we pay the full premium. The plan has a 4000 deductible. I have an HSA account. What's the best way for me handle this on our taxes?


Rachell - I assume TASC is correct. They are the experts in this.


Hi, if I pay my spouse to "clean" in order to set up this med acct, and I pay him, how should that be reflected on our joint tax return?

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