Does it mean I'm paying for medical expenses two times?
In a way, yes - however it is temporary.
- First, you pay for the medical expense personally out of your pocket.
- Then, your corporation pays the same amount to your health spending account provider to process the claim for this expense.
- Once the claim is processed, your health spending account provider then reimburses you (personally) fully.
So, while it seems like you pay twice, your corporation benefits from a tax deduction and you are reimbursed (personally) tax-free.
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