Tax-Free Home Care for Seniors from Health Savings Accounts
New rules allow tax-free withdrawals from Health Savings Accounts (HSAs) for certain home care expenses for seniors. This means that costs for daily living assistance, like eating or bathing, can be paid without tax, making in-home support more accessible. The government also plans an awareness campaign to inform citizens about these changes.
Key points
Allows tax-free use of Health Savings Account (HSA) funds for specific senior home care services.
Covered services include assistance with eating, toileting, transferring, bathing, dressing, continence, and medication adherence.
Services must be provided by state-licensed providers or in line with state requirements, and not by related parties.
The changes apply to taxable years beginning after the law's enactment date.
A public awareness campaign will be launched to promote eligible in-home service expenses.
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