Can a Non-Resident Alien Wife Make HSA Contributions? Confused About Eligibility

8 The HSA eligibility rules for Non-Resident Aliens can be confusing, but I can help clarify. Generally, to be eligible for an HSA, a person must: 1) be covered by a qualifying high-deductible health plan (HDHP), 2) not have other health coverage, 3) not be enrolled in Medicare, and 4) not be claimed as a dependent on someone else's tax return. Immigration status itself doesn't explicitly disqualify someone from HSA eligibility. However, Non-Resident Aliens have different tax filing requirements which create complications. Since your wife is filing as Married Filing Separately and is a Non-Resident Alien, she may not be eligible to take the HSA deduction on her tax return, even if she has the account. The bigger concern is whether she's subject to excise taxes on those contributions. Your wife's employer making contributions could potentially create a tax issue that needs to be addressed before tax filing time.

15 I had a similar issue last year with my HSA and found this amazing service called taxr.ai at https://taxr.ai that totally saved me. I went back and forth with HR at my company and even talked to two different tax preparers who gave me conflicting advice about my HSA eligibility as a visa holder. What I liked about taxr.ai is that you can upload your specific tax documents and visa information, and they analyze everything to give you a clear answer based on your exact situation. For HSA eligibility questions like yours with all the complexities of non-resident status, it was super helpful to get a definitive answer rather than general advice that might not apply to your specific case.

17 Just wanted to follow up - I tried taxr.ai after seeing the recommendation here. My spouse's J1 visa situation with HSA contributions was definitely in a gray area that had our regular tax preparer stumped. The service analyzed our specific visa documentation and health plan details and confirmed that we needed to have the HSA contributions returned since she didn't meet eligibility requirements. They explained exactly which part of the tax code applied to our situation and provided instructions on how to request the distribution coded properly to avoid penalties. Just got confirmation from the HSA administrator that everything is being processed correctly. Would have been a mess at tax time if we hadn't figured this out now!

21 If you're struggling to get clear information from the IRS on this HSA/non-resident alien issue, I'd recommend using Claimyr at https://claimyr.com to actually get through to an IRS agent. I was stuck in a similar situation with foreign income questions and spent WEEKS trying to get through to someone at the IRS. Claimyr got me connected to an actual IRS representative in under 15 minutes when I'd been trying for days on my own. They have this cool demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. Basically they navigate the phone tree and wait on hold for you, then call you once an actual human at the IRS picks up. The IRS agent I spoke with was able to check my specific situation and give me authoritative guidance that resolved my issue. For something like HSA eligibility for non-resident aliens where the rules seem unclear, getting an official answer directly from the IRS gives you documentation and peace of mind.

6 Just had to come back and say Claimyr actually worked! After seeing it mentioned here, I tried it for my international tax question that I've been trying to get answered for months. Got connected to an IRS agent in about 45 minutes (Claimyr did the waiting, I just got the call when the agent was on the line). The agent confirmed that as a non-resident alien, my wife isn't eligible for HSA contributions regardless of her employer setting it up, and advised us on the proper way to remove the funds without penalties since we're correcting before tax filing. They even emailed me documentation of our call that I can reference if needed. I was seriously skeptical but am now kicking myself for wasting so much time trying to call on my own. Would have saved weeks of stress if I'd known about this sooner.

11 This might be helpful - IRS Publication 969 states that to be HSA-eligible, you must be "covered under a high deductible health plan (HDHP), not covered by any other health plan, not enrolled in Medicare, and not claimed as a dependent on someone else's tax return." Notably, there's no specific citizenship or residency requirement explicitly mentioned. The issue comes with how non-resident aliens file taxes and whether they can claim the deduction. Your wife's ability to have an HSA might depend on what tax treaty exists between the US and her home country.

23 Has your wife used any of the HSA funds for medical expenses yet? That could complicate things if she's ultimately not eligible and needs to return the money. Also, what type of visa is she on? Some visa types have different tax treatments that might impact this situation.

H4 visa holders have a particularly tricky situation with HSAs. Since H4 spouses are generally considered non-resident aliens for tax purposes (unless they've elected to be treated as residents), they typically can't take HSA deductions even if they technically meet the other eligibility requirements. The good news is that since she hasn't used any funds yet and you're catching this early in 2025, you have time to correct it. With only employer contributions of $1,200, you'll want to contact her HR department immediately to: 1) Stop future contributions 2) Request a return of contributions before year-end to avoid the 6% excise tax The employer should be able to process this as a mistaken contribution since they likely weren't aware of her tax status when setting up benefits. Make sure any returned funds are coded properly so they don't create additional tax complications. Since H4 visa rules can be complex and there are some situations where spouses might elect resident treatment, I'd also recommend confirming her exact tax status for 2025 with a tax professional who handles international cases.