What makes something HSA eligible?
Asked by: Miss Elenor Muller DVM | Last update: May 10, 2025Score: 4.4/5 (39 votes)
What makes an item HSA-eligible?
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.
What determines eligibility for HSA?
To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements. You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. You have no other health coverage except what is permitted under Other health coverage, later.
Can I use my HSA to pay for gym membership?
Generally, the IRS doesn't allow pretax dollars in HSAs or FSAs for gym memberships. This is because they see them as expenses for general well-being rather than medical necessity. However, with a Letter of Medical Necessity (LMN), your HSA or FSA could be used to fund those expenses.
How to see if an item is HSA-eligible?
Always check with your HRA or FSA administrator to confirm the eligibility of an expense with your individual plan.
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Is the Apple Watch HSA eligible?
Why other fitness trackers don't qualify. 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 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.
Can I use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
Can I use HSA for vitamins?
In general, vitamins are not considered an HSA eligible expense unless they are prescribed by a doctor for a specific medical condition. For example, if your doctor prescribes prenatal vitamins during pregnancy or recommends vitamin D supplements to treat a deficiency, those could be eligible expenses under your HSA.
Can I use my HSA for massage?
Your HSA can pay for massage therapy, though you'll likely need a letter of medical necessity (LMN) from your doctor. An LMN states what condition the treatment is for, how many sessions you need, and any other relevant details. An HSA may also be used on alternative or holistic treatments, such as: Massage therapy.
What disqualifies you from an HSA?
An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA.
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 is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
How is HSA eligibility determined?
You must participate in a High Deductible Health Plan, have no other insurance coverage other than those specifically allowed, and not be claimed as a dependent on someone else's tax return in order to be eligible for an HSA.
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).
Are air purifiers HSA-eligible?
Air Filter: HSA Eligibility
Air filter for general use not eligible. Air purifiers that are not purchased to treat or alleviate a medical condition and where a Letter of Medical Necessity is not obtained are not eligible.
Can you use HSA for gym membership?
Gym memberships. 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.
Are tampons HSA eligible?
With the passage of the CARES Act in March 2020, tampons and other menstrual care products are now fully FSA-/HSA-eligible. According to the text of the bill, menstrual care products include, “tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation…”
Is ibuprofen HSA eligible?
Ibuprofen is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), or a health reimbursement arrangement (HRA). Ibuprofen is not eligible with a dependent care flexible spending account (DCFSA) or a limited-purpose flexible spending account (LPFSA).
Can I use HSA for glasses?
Yes! You can definitely use funds from your flexible spending account (FSA) or health savings account (HSA) to purchase prescription glasses. (FSAs and HSAs can be used for many other vision- and eye health-related expenses, too, but we'll discuss that more in a bit.)
Can I buy a toothbrush with HSA?
Unfortunately, most products for oral health care are not currently eligible medical expenses for FSA and HSA spending.
Can HSA be used for pets?
The short answer is yes, you can use your HSA for veterinary expenses. Under current IRS guidelines, eligible medical expenses include those that are primarily for the prevention or alleviation of a physical or mental defect or illness.
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.
Can I use my HSA for skincare?
This means that any skin care costs that count towards your deductible, such as prescription medications or dermatologist visits, can be paid for using HSA funds.
What can I not spend HSA on?
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)