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Daily Dilemma - He's Boozing Tax-Free

Hi Kelly,

I'm trying to convince my boyfriend that he's making a huge mistake by using the debit card to his health savings account card to buy wine and cigarettes.  I reminded him that the card is only supposed to be used for things related to health, and he jokes by saying that wine and cigarettes affect his health so they should be included.  I am the type of person who has to play by the rules and he is the exact opposite.  If there is a rule he is going to try and break it.  In this case, though, I think he's asking for trouble.  Am I overreacting?

Nervous Nelly

Dear Nervous,

I think your boyfriend is a hoot but I agree that he shouldn't be buying wine and cigarettes with his H.S.A. card.  However, unless you're married and filing taxes jointly, I wouldn't worry about it.  It's his risk to take and he's the one who'd have to pay back the money with penalties and interest if ever caught.  Although, he might be able to argue his wine and cigarette theory to the I.R.S.  It seems plausible to me!
Take care,
Kelly McKay

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