Do I read Pub. 969 correctly that I can use my HSA to pay the medical expenses of my son age 20, not a full-time student, lives at home, the only reason I can't claim him as a full dependent is that he earns over $4000/yr. Pub. 969 reads (upper-casing mine):
"Qualified medical expenses are those incurred by the following persons.
You and your spouse.
All dependents you claim on your tax return.
Any person you COULD HAVE claimed as a dependent on your return EXCEPT THAT:
The person filed a joint return,
THE PERSON HAD GROSS INCOME OF $4,000 OR MORE, or
You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2015 return."
My understanding from reading a few articles on the subject was that I can use HSA distributions to pay medical expenses only of a person whom I could claim as a dependent, i.e. meeting all 4 requirements of Pub. 17:
"The person can't be your qualifying child or the qualifying child of any other taxpayer.
The person either (a) must be related to you in one of the ways listed under Relatives who don't have to live with you , or (b) must live with you all year as a member of your household (and your relationship must not violate local law).
The person's gross income for the year must be less than $4,050.
You must provide more than half of the person's total support for the year."
So in summary, am I correct that Pub. 17 requires 4 tests for being a dependent, but Pub. 969 waives the $4000 income test?
Thanks.