Overview
HSAs offer incredible flexibility—not just in what you can claim, but also in the range of dependants you can add to share in the benefits of your account!
Unlike insured plans, your tax free HSA funds can be used for any person related by blood, marriage, or law, as long as they’re financially dependant on you – even the CRA agrees 😉
In this article, we’ll break down everything you need to know about dependant qualifications, so you (and your dependants!) can make the most of your HSA.
The details
Dependant categories
As we mentioned above, a dependant can be any person related by blood, marriage, or law. That list can be pretty extensive so let’s take a look at some examples.
Spouses and partners
- Your spouse or common-law partner is definitely eligible as a dependant on your Plan (even if they’re working and have their own income).
- The CRA does require that common-law partners have cohabitated (lived together) for 12 consecutive months.
- In cases of separation or agreements, a spouse may still qualify. Keep documentation for audits or CRA reviews.
Children
- You can add your children as dependants on your HSA.
- This includes biological, adopted or stepchildren.
Extended family members
- This could include parents, in-laws, siblings, aunts and uncles, or nephews and nieces.
- If you’re adding any of the above as dependants, keep in mind that they would have to be residents of Canada at the time that their eligible expense was incurred.
Financial dependence
For any of the dependants listed above to qualify as a dependant on your Plan, they must be financially dependent on you.
The CRA defines this as providing support, like housing, food and other necessities, on a regular basis. Your dependants can definitely have an income of their own, but that income must not be enough to meet their needs.
Anything else?
Looking for information on adding dependants in your Member Centre? Managing dependants in your Member Centre is a helpful guide.