Qualified Expenses for a Health Savings Account (HSA)
EXPENSES Abortion Acid Controller Acne treatment
Acupuncture Adoption
Air conditioner, air filter, purifier Air filter
Alcoholism, drug addiction
Allergy medicine Allergy treatment
products
Qualified Expenses for a Health Savings Account (HSA)
Retain all receipts and documentation with tax records. Proof of qualified expenses is the HSA account holder's responsibility.
QUALIFIED?
Yes w/ Prescription
w/ Prescription
IRS GUIDELINES
The cost of a legal abortion is a qualified medical expense.
When prescribed by a physician, the cost of an acid controller is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician for the treatment of acne, the cost of acne treatment is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
No
When the treatment is for cosmetic purposes (for ex., to reduce wrinkles), the cost is
not a qualified medical expense.
No
The cost of regular skin care is not a qualified medical expense.
Yes
When recommended by a health care professional for a medical condition, the cost of
acupuncture is a qualified medical expense.
Yes
If the child is a tax-qualified dependent at the time services were rendered, medical
expenses paid for a child prior to adoption are qualified medical expenses.
No
Fees relating to the adoption process and for medical expenses incurred prior to
beginning adoption negotiations are not qualified medical expenses.
No
Expenses incurred by the birth mother associated with an adopted baby's birth are not
qualified medical expenses for the HSA account holder (and spouse).
Yes
When recommended by a health care professional for a medical condition, the cost of
a portable or permanent unit is a qualified medical expense. Retain evidence of
medical necessity (e.g., prescription, doctor's note) with the receipt. For permanent
units, see Capital expenses.
See Air conditioner, air filter, purifier.
Yes
The cost of treatment at a center for alcohol or drug addiction is a qualified medical
expense. This includes meals and lodging provided by an inpatient center during
treatment.
Yes w/ Prescription
No
When recommended by a health care professional, fees and transportation costs to attend Alcoholics Anonymous (AA) meetings are qualified medical expenses. Also see Transportation.
When prescribed by a physician, the cost of allergy medicine is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
If the product would be owned even without allergies (such as a pillow or vacuum cleaner), the expense is generally not a qualified medical expense.
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Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, Kellogg Smith does not provide tax or legal advice. Any Federal income tax information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties, nor should be considered or relied upon as legal or tax advice. Our clients should seek advice based on their particular circumstances from an independent tax advisor. This material is for informational purposes only and IRS eligible expense determination may vary.
EXPENSES Allergy treatment
products
Alternative provider
Ambulance Analgesics Anesthesiology
Antacids Antibiotic ointment
Antihistamine Anti-Diarrheals Anti-gas medicine Anti-itch cream Anti-itch cream (cont.)
Anti-parasitic treatments
Qualified Expenses for a Health Savings Account (HSA)
Retain all receipts and documentation with tax records. Proof of qualified expenses is the HSA account holder's responsibility.
QUALIFIED?
IRS GUIDELINES
Yes
When recommended by a health care professional for a medical condition, the cost of
an allergy treatment product may be a qualified medical expense. Retain evidence of
medical necessity (e.g., prescription, doctor's note) with the receipt. Also see Air
conditioner, air filter, purifier. Note: The reimbursable expense includes only the
amount above the cost of the product in its standard form.
Yes
When recommended by a health care professional for a medical condition, the cost of
a homeopathic or holistic treatment/procedure may be a qualified medical expense.
Retain evidence of medical necessity (e.g., prescription, doctor's note) with the
receipt.
No Yes w/ Prescription Yes w/ Prescription w/ Prescription w/ Prescription w/ Prescription w/ Prescription w/ Prescription w/ Prescription
Naturopathic procedures and treatments using natural agents such as air, water or sunshine are generally not qualified medical expenses.
The fee paid for ambulance service is a qualified medical expense.
When prescribed by a physician, the cost of an analgesic is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
Anesthesiology fees are qualified medical expenses.
When prescribed by a physician, the cost of an antacid is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of antibiotic ointment is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of an antihistamine is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of an anti-diarrheal is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of anti-gas medicine is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of an anti-itch cream is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When prescribed by a physician, the cost of an anti-parasitic treatment is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
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Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, Kellogg Smith does not provide tax or legal advice. Any Federal income tax information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties, nor should be considered or relied upon as legal or tax advice. Our clients should seek advice based on their particular circumstances from an independent tax advisor. This material is for informational purposes only and IRS eligible expense determination may vary.
EXPENSES
Appearance improvement Arch support Arthritis medicine
Artificial insemination Artificial limb
Artificial teeth Aspirin
Asthma equipment
Automobile modification
Autopsy Baby Rash Ointment/Cream
Babysitting/child and dependent care Bandages Behavioral
modification program Birth control
Birth control (cont.) Birthing classes Birthing coach Bleaching/teeth
Qualified Expenses for a Health Savings Account (HSA)
Retain all receipts and documentation with tax records. Proof of qualified expenses is the HSA account holder's responsibility.
QUALIFIED?
See Cosmetic treatment.
IRS GUIDELINES
w/ Prescription Yes
w/ Prescription Yes
See Orthopedic shoes and inserts.
When prescribed by a physician, the cost of arthritis medicine is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
See Fertility.
Amounts paid for the design and purchase of an artificial limb are qualified medical expenses.
See Dental treatment.
When prescribed by a physician, the cost of aspirin is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
When recommended by a health care professional for the treatment of asthma, the cost of asthma equipment (for ex., a nebulizer or peak flow meter) is a qualified medical expense.
See Car.
No w/ Prescription
No Yes
The cost of an autopsy is not a qualified medical expense.
When prescribed by a physician, the cost of baby rash ointment or cream is a qualified medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
The cost of babysitting, child care and nursing services for a healthy child or dependent are not qualified medical expenses. Also see Disabled dependent care.
The cost of bandages is a qualified medical expense.
See Schools, special; and Tuition.
Yes
The cost of prescription birth control (IUD, diaphragm, pill, Norplant, etc.) is a
qualified medical expense.
Yes
Amounts paid for over-the-counter products or devices (condoms, spermicide,
pregnancy test kit, etc.) are qualified medical expenses.
See Childbirth classes.
See Doula.
See Cosmetic treatment.
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Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, Kellogg Smith does not provide tax or legal advice. Any Federal income tax information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties, nor should be considered or relied upon as legal or tax advice. Our clients should seek advice based on their particular circumstances from an independent tax advisor. This material is for informational purposes only and IRS eligible expense determination may vary.
EXPENSES
Teeth whitening Blood donation
Blood pressure monitoring device Blood sugar test kit and
strips Body scan Bonding of the teeth
Braces Braille books and
magazines
Breast augmentation
Breast implant removal
Breast pump, purchase or rental
Breast reconstruction
Breast reduction
Capital expenses
Qualified Expenses for a Health Savings Account (HSA)
Retain all receipts and documentation with tax records. Proof of qualified expenses is the HSA account holder's responsibility.
QUALIFIED?
Yes Yes
IRS GUIDELINES
See Cosmetic treatment. A fee associated with blood donation for subsequent use by the account holder, spouse or eligible dependent is a qualified medical expense. The cost of a blood pressure monitoring device is a qualified medical expense.
Yes
Amounts paid for a blood sugar testing kit and strips are qualified medical expenses.
Yes
The cost of a body scan is a qualified medical expense.
See Cosmetic treatment.
See Orthodontia.
Yes
For use by visually impaired persons, the cost of Braille books and magazines are
qualified medical expenses. Note: The qualified expense includes only the amount
above the cost of the product in its standard form.
No
The cost of breast augmentation (such as an implant or injection) is not a qualified
medical expense. Also see Cosmetic treatment.
Yes
If causing a medical problem, the cost to remove a breast implant is a qualified
medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's
note) with the receipt.
Yes
When recommended by a health care professional for a medical condition with either
the mother or the infant (or both), the cost of a breast pump is a qualified medical
expense.
Yes
The cost of breast reconstruction surgery following a mastectomy is a qualified
medical expense. Also see Mastectomy-related expenses.
Yes
When recommended by a health care professional for a medical condition (to prevent
or treat an injury, illness or disease), the cost of breast reduction surgery is a qualified
medical expense. Retain evidence of medical necessity (e.g., prescription, doctor's
note) with the receipt.
Yes
When recommended by a health care professional for, or as a result of, a medical
condition, the cost of installing equipment in the home (such as a ramp or wheelchair
lift) is a qualified medical expense. Retain evidence of medical necessity (e.g.,
prescription, doctor's note) with the receipt. Note: If the capital expenditure is a
permanent improvement that increases the value of the property, the excess value is
not reimbursable. See Publication 502 at for more information.
Improvements made to accommodate a residence for a person's disability do not usually increase the value of the residence, and the full cost is usually reimbursable. Note: Only reasonable costs to accommodate a personal residence for a disabled
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Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, Kellogg Smith does not provide tax or legal advice. Any Federal income tax information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties, nor should be considered or relied upon as legal or tax advice. Our clients should seek advice based on their particular circumstances from an independent tax advisor. This material is for informational purposes only and IRS eligible expense determination may vary.
EXPENSES Capital expenses (cont.)
Car
Carpal tunnel wrist supports
Chair (medical supplies)
Chelation therapy Childbirth Childbirth
classes/Lamaze
Qualified Expenses for a Health Savings Account (HSA)
Retain all receipts and documentation with tax records. Proof of qualified expenses is the HSA account holder's responsibility.
QUALIFIED?
Yes No Yes
IRS GUIDELINES
condition are considered medical care. Additional costs for personal motives, such as for architectural or aesthetic reasons, are not reimbursable.
Example. Individual has a heart ailment. On doctor's advice, they install an elevator in the home so the individual will not have to climb stairs. The elevator costs $8,000. An appraisal shows that the elevator increases the value of the home by $4,400. Medical expense are calculated like this:
1. Enter amount paid for the improvement.1. $8,000
2. Increase in value of home after improvement. Enter value of home after improvement. 2a. $124,400
Enter value of your home before improvement. 2b. $120,000
3. Subtract line 2b from line 2a.
3. $4,400
If line 3 is more than or equal to line 1, no deduction; stop here.
If line 3 is less than line 1, go to line 4.
4. Subtract line 3 from line 1. This is your medical expense. 4. $3,600
Note: A qualified real estate appraiser will be needed to determine increased value.
When used by a person with a disability, amounts paid for hand controls and other special equipment installed in a car, including installation costs, are qualified medical expenses. Retain evidence of medical necessity (e.g., prescription, doctor's note) with the receipt. Note: The cost of the vehicle itself is not a qualified medical expense.
The cost of operating a specially equipped car is not a qualified medical expense. Also see Transportation.
The cost of carpal tunnel wrist supports is a qualified medical expense.
Yes
When recommended by a health care professional for a medical condition, the cost of
a medically designed or equipped chair (such as a geriatric chair or bath safety chair)
is a qualified medical expense. Retain evidence of medical necessity (e.g.,
prescription, doctor's note) with the receipt.
Yes
When recommended by a health care professional for a medical condition (such as
lead poisoning), the cost of chelation therapy is a qualified medical expense. Retain
evidence of medical necessity (e.g., prescription, doctor's note) with the receipt.
See Maternity charges.
Yes
Class time instruction related to childbirth (including breathing and relaxation
techniques, stages and phases of labor, labor and delivery procedures, birthing
positions, movie depicting vaginal and cesarean delivery, and cesarean discussion) is a
qualified medical expense.
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Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, Kellogg Smith does not provide tax or legal advice. Any Federal income tax information contained in this communication is not intended to (and cannot) be used by anyone to avoid IRS penalties, nor should be considered or relied upon as legal or tax advice. Our clients should seek advice based on their particular circumstances from an independent tax advisor. This material is for informational purposes only and IRS eligible expense determination may vary.
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