Can I use my HSA card for groceries?
Asked by: Mikayla McKenzie DVM | Last update: February 1, 2025Score: 4.5/5 (32 votes)
What happens if I use my HSA for groceries?
If you use your HSA for an expense other than eligible medical expenses you can subject yourself to significant IRS penalties. Inappropriate use of your HSA funds may also leave you without money to pay for your eligible medical expenses in the future.
What can you not use your HSA card for?
Other items that aren't eligible include maternity clothes, funeral costs, child care for healthy babies, toiletries, over-the-counter medicine, swimming lessons and elective cosmetic procedures. You also usually can't use HSA money to pay for health insurance premiums unless you meet certain criteria.
What stores can I use HSA cards in?
How do I use my HSA card at Walmart?
To use your HSA/FSA card, enter it as a credit card when buying eligible items. If you save the card to your account, it will save as a benefit card.
What Can the HSA Debit Card Buy? (What Can You Purchase with HSA Funds?)
Can I use HSA for shopping?
You can use your HSA to pay for healthcare costs such as emergency, dental, and vision expenses. The CARES Act has expanded the list of HSA-eligible items to include over-the-counter purchases, making the costs of everyday healthcare tax-deductible. Confirm with your HSA administrator which expenses are eligible.
Why is my HSA card being declined when I have money?
Card declines can occur because funds have expired, new cards have been issued, the card does not have sufficient funds or various other reasons. You typically find the contact information for your plan administrator on the back of your FSA/HSA card.
Can I buy anything with my HSA card?
You can use your HSA to fund big bills, like braces. It can also help cover routine dental needs, like cleanings and fluoride treatments. Your health insurance might not cover a new pair of eyeglasses or your contact lens solution, but those expenses are qualified. Even better: so is laser eye surgery.
Can I swipe my HSA card anywhere?
Your Health Savings Account (HSA) card is a debit card tied to your HSA. It allows you to access your funds for qualified medical expenses and can be used anywhere Mastercard® debit cards are accepted.
Can I use my HSA card for a gym membership?
While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.
What is the downside of an HSA?
Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).
What happens if I accidentally use my HSA card for non-medical expenses?
You can repay the incorrect distribution before filing your federal taxes for that tax year. However, if you do not correct the mistake, the unqualified amount will be subject to income tax, and you may also face an additional 20% tax penalty.
Can you buy vitamins with HSA?
With this IRS definition in mind, daily multivitamins and most dietary supplements are currently not FSA/HSA eligible.
How does IRS know what you spend HSA on?
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes.
How do I buy food with my HSA card?
No, you can't use your Flexible Spending Account (FSA) or Health Savings Account (HSA) for straight food purchases like meat, produce and dairy. But you can use them for some nutrition-related products and services. To review, tax-advantaged accounts have regulatory restrictions on eligible products and services.
What can I not buy with HSA?
For example, nutritional supplements that aren't prescribed by your doctor aren't covered. Health club memberships and lactose intolerance medications typically aren't covered either. Here are some examples of non-qualified HSA expenses: Babysitting or child care (a dependent care FSA can help with child care)
Can I cash out my HSA?
Yes, you can withdraw funds from your HSA at any time. But please keep in mind that if you use your HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.
Can I get gas with my HSA card?
Fuel is eligible for transportation to and from medical care, up to the allowed mileage rate.
What happens when my HSA balance is $0?
Will my HSA account remain open if I have a $0 balance? The account will remain open if you have a $0 balance. There is no fee assessed to you for having a $0 balance.
Can I buy deodorant with HSA?
Deodorant reimbursement is not eligible with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).
Can I run my HSA card as credit?
In order for your card to work, you must have the balance available in your HSA; no overdraft is available. Please note: The card will not work at ATMs and will only work at appropriate medical facilities. The card should always be run as 'credit' and no PIN is required.
Is the Apple Watch HSA eligible?
Even though Fitbits and Apple Watches measure important health data, they currently do not qualify for HSA reimbursement, as they are considered for general health use and not intended to treat or manage a specific medical condition.
What happens if I accidentally used my HSA card for groceries?
If you catch the transaction early enough, you might even be able to contact the retailer and ask them to reverse the charge and fill it on a new card. If you bought something in person, you can also return it to the store and then buy it again with a different card.
What happens if I use my HSA card for non-medical expenses?
In addition, if HSA funds are withdrawn before age 65 and not used for eligible medical expenses are generally subject to an additional 20% tax penalty. In other words, you may lose the tax benefits when you use HSA for non-medical expenses. There may also be a significant tax fee or penalty.
Can I use my HSA card at Walmart?
If you have an HSA card, just try it out and use it wherever you go. To Walgreens, Walmart, Meyer, anywhere.