As a member of myHSA, you might wonder if your adult child or dependent, who is a university or college student, can be considered a dependent under your Health Spending Account (HSA). The good news is, they can! Here's how.
Criteria for Dependent Eligibility
To qualify as a dependent under myHSA, the following criteria are used:
Spouse: A spouse recognized by marriage or common-law relationship qualifies automatically.
Family Members: A person related to the myHSA account holder by blood or adoption, provided they live in the employee's primary residence.
Financial Dependents: Any individual (excluding spouses) who is financially reliant on the employee. Notably, there is no age limit for dependents if the above conditions are satisfied.
Importantly, there is no age limit for dependents as long as they meet the above criteria. However, it's worth mentioning that the absence of an age limit is contingent on them fulfilling the eligibility conditions detailed above.
Special Consideration for Students
For university or college students, the "living in the same primary residence" caveat can be a bit confusing. It's important to note that this does not exclude students living on campus. If your child is attending university or college and living in campus housing, they can still qualify as your dependent under myHSA! As long as the following is true:
Their mail is sent to your primary residence.
Their driver's license lists your primary residence as their address.
This ensures that even though they are physically away for their studies, they are still considered to be part of your household for HSA purposes.
For Example...
Imagine your child is attending university in another city. They live in a dormitory during the school year but returns home during breaks. All official documents, such as their driver's license and university mail, list your home as their address. They are still financially reliant on you for tuition, housing, and other expenses. Under these circumstances, they qualifies as your dependent under your HSA.
Understanding dependent eligibility under myHSA can provide significant benefits for families with adult children in university or college. Especially with how expensive this time can be for families! By ensuring your child meets the criteria outlined—being related by blood, marriage (step-children), or adoption, living in the same primary residence on record, and being financially reliant on you—you can confidently include them as a dependent under your HSA, even if they live on campus during the school year. Additionally, these eligibility rules apply not only to students but also to other family members or financial dependents meeting the outlined conditions, offering broader support for managing HSA benefits.
Questions? Reach out to support@getmyhsa.com by email, or open a live chat and we'd be happy to help you out!For more intricate situations, such as temporary visits by dependents, consulting the official CRA (Canada Revenue Agency) guidelines or seeking professional advice is strongly recommended.