Tax Guide

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HSA Qualifying Expenses

You can use your HSA for many medical products and services, but be careful you don’t use any HSA money for non-qualifying expenses. That can incur a 20% penalty.

An HSA qualifying medical expense is an expense that insurance doesn’t pay for OR reimburse you for. Otherwise, qualifying expenses are the same as those qualifying for the medical expense deduction. Many medical services and supplies are eligible:

  • Professional services, medical treatments, and laboratory tests – Any co-pays or costs of specialists such as dermatologists, oncologists, and neurologists can be paid for by an HSA. Prenatal classes are qualifying expenses. The costs of lab work can be paid for by an HSA.
  • Dental services – Co-pays for dental visits for cleanings and other dental services are qualifying expenses. Braces, dentures, and dental surgery also qualify.
  • Hospital services – If you have a procedure at a hospital, any fees or costs not covered by insurance can be paid for by an HSA. So are fees for an anesthetist, using the operating room, and even food if you’re receiving inpatient care.

Keep receipts for any expense you use your HSA for, including for doctor co-pays, prescriptions, and medical supplies. Also keep all HSA account statements. You don’t need to submit any of the receipts when you e-file your return, but it’s a good idea to keep the receipts in case the IRS questions an expense.

See also:
HSAs and Your Tax Return
Who’s Eligible for an HSA?
Withdrawing from an HSA