This is my 1st time owning a HDHP/HSA and I am not sure what to do here if anything.
The HSA has been in place for about 4 months so the balance is not ginormous.
When I had a tooth pulled I paid the dentist with funds from my HSA, a total of around $350.00.
Well, the HDHP refunded $125.00, (YAY !!) and I am wondering if it makes sense to deposit it back into the HSA.
Or invest it somewhere else.
It seems that I have $125.00 in my pocket that was earned income that I paid no taxes on.
If this is the case, then it seems like a small loophole to be able to get tax free $$$.
Or am I not figuring this accurately.
Or, more likely, the HDHP will report it to the IRS on some form that I will need to be on the watch for, and I will need to report it properly at tax time.