The
IRS has ruled that it is the owner of the HSA who must keep track
of their expenses. In case of audit the records must show
that withdrawals from the HSA are qualified expenses.
Qualified
expenses are determined from IRS
publication 502. These are the same expenses that taxpayers
can use to deduct medical expenses on the 1040 form. To be
eligible to deduct medical expenses directly on the 1040 form, the
expenses must reach 7.5% of gross income. It's much easier
to use a HSA account.
There
are some additional expenses you can use for the HSA account as
well, like over the counter medicines. If you have a special
circumstance that you think should be entitled for a qualified expense
make sure your get a letter of necessity from your healthcare provider.
If your still unsure, I suggest contacting a tax accountant
for their advice.
Following is a list of
some eligible expenses.
Eligible
Medical Expenses |
• Acupuncture
• Alcoholism treatment
• Ambulance
• Anesthetist
• Arch supports
• Artificial limbs
• Birth Control Pills
• Blood tests
• Blood Pressure
monitor
• Braces(orthodontics)
• Braces(orthopedic)
• Chiropractor
• Cost of some expenses for conferences on medical conditions
• Contacts
• Contraceptive devices-RX
• Nursing home
(for medical treatment only)
• Crutches
• Dental Expenses
• Dentures
• Diagnostic fees
• Drug addiction therapy
• Drugs (prescription and some OTC)
• Elastic hosiery (prescription)
• Eyeglasses
|
• Guide dog
• Gum treatment
• Hearing aids and batteries
• Hospital bills
• Hydrotherapy
• Insulin treatment
• Lab tests
•
Lodging (away from home for
outpatient care)
• Long
term care premiums
• Nursing
• Operating room costs
• Optician
• Optometrist
• Oral surgery
• Organ transplant
• Orthopedic softgoods and shoes
• Oxygen equipment
•
Obesity treatment
•
Osteopath
•
Prosthesis
•
Nursing Home
•
Costs to modify a car or home for a disability
|
• Physicians
• Podiatrists
• Postnatal treatments
• Practical nurse for medical service
• Prenatal care
• Prescriptions
• Psychiatrist
• Psychoanalyst
• Psychologist
• Radium Therapy
• RN
• Special school costs for the handicapped
• Splints
• Sterilization
• Surgeon
• Telephone or TV equipment to assist the hard-of-hearing
• Therapy equipment
• Transportation expenses
(related to health care)
• Vaccines
• Vasectomy
• Wheelchair
• X-rays |
Eligible
Over-the-Counter Drugs |
•
Antacids
• Allergy \Sinus medications
• Pain relievers
• Cold medicine
• Anti-diarrhea medicine
• Cough drops and throat lozenges |
• Nicotine medications
• Rehydration drinks(Pedialyte)
• First aid creams
• Calamine lotion
•
Wart removal
•Bandages
|
•
Wart removal medication
• Antibiotic ointments
• Suppositories and creams for hemorrhoids
• Sleep aids
• Motion sickness pills |
http://www.irs.gov/publications/p502/ar01.html
ar01
|
