HSA Qualified Expenses – 53 points to maximize HSA deduction phone
Using a HSA (Health Savings Account) with federally qualified HDHP your (High Deductible Health Plan) is a great way to providing health insurance for you and your family. Since the federal government has provided tax advantaged position HSA, it is important to know what expenses are allowed (and what is not allowed) so you do not get in trouble with the IRS.
Review the list below and take each HSA Qualified expenses you are eligible. You may be surprised at some of the items on the list, because the government is expected some medical expenses that are typically excluded from traditional health insurance plans.
What are HSA eligible expenditure?
government says basically the costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of diseases and the costs for treatments affecting any part or function of the body is allowed. This includes payments for legal medical services provided by doctors, dentists and other doctors. You can also include the cost of equipment, supplies and instruments required for the above items. However, medical expenses will be primarily to reduce or prevent a physical or mental defect or illness. It is not permit for costs that are only beneficial to health, such as vitamin or holiday .
The following list contains items that are commonly over-looked, but are considered HSA Qualified expenses. Note, this list does not contain all possible medical expenses, just some of which may not be so obvious.
HSA eligible expenditure
- Alcoholism – Inpatient treatment, including food & housing. Also, transportation costs to and from Alcoholics Anonymous meetings where attendance is under medical advice.
- Artificial Limbs
- artificial teeth
- pill -. If prescribed by a doctor
- Body Scanners -. Electronic body scans ordered by a doctor
- Braille Books & Magazines -. Just the cost difference between a regular printed version and the version for the visually impaired
- Breast Pumps and Supplies – Medical expenses incurred to assist breastfeeding
- Breast Reconstruction Surgery -. Non-cosmetic purposes only, such as reconstruction surgery following a mastectomy cancer
- Capital Equipment (ie medical need Home Improvement) – If the equipment / improvement / change does not increase the value of your property , all costs is HSA qualified expenses. However, if the equipment / improvement / change increases the value of assets, the only difference allowed. For example, you put a lift in your home that cost you $ 15,000, but property values increased by $ 20,000 difference between the $ 5,000 is the amount that is allowed. Some of the more common improvements include, but are not limited to, the following:
- construct entrance or exit ramps for the home
- widening doorways, both inside and outside
- Installation railings, support bars, or other modifications bathroom safety
- Reducing or changing kitchen cabinets and equipment
- move or change electrical outlets and fixtures
- Installation porch lifts and other lifts (elevators and generally add value to property)
- Changes fire alarms, smoke detectors and other alarm systems
- to change the level
- Adding handrails or grab bars where
- Changes hardware on the door
- to change the area in front of the entrance and exit doorways
- Grading the ground to provide facilities on the home screen
- only reasonable costs are allowed. The cost for construction or aesthetic reasons are not HSA qualified expenses.
- Car – much like home, costs for equipment / improvements / changes necessary to use the disabled are allowed. Again, if it increases the value, only the difference is permissible.
- Christian Science expert
- Community Living for intellectual and Developmentally disabled – Allows cost of keeping a person in a special home (not relatives) on the recommendation of a psychiatrist to help the person adjust from life in a mental hospital to community living .
- lenses -. It is also possible to include saline solution, enzymatic cleaner and other items needed to use contacts
- crutches -. Either the cost to buy or rent is allowed
- Dental Treatment – Prevention, such as teeth cleaning, sealants, fluoride are allowed. Also, X-rays, fillings, braces, dentures, etc. extracts are also HSA qualified expenses.
- Diagnostic Devices -. You can include the medical costs of the tools used in the diagnosis and treatment of diseases and conditions, such as blood glucose monitor for diabetics
- Disabled care spending – disabled care for expenses can be considered either:
- medical expenses or
- Work-related expenses in order to take credit for the care for
- Drug Addiction -. Inpatient treatment of medical center for drug addiction, including food and accommodation in the center of
- Glasses -. Eye exams, contact lenses, frames permitted charges
- Eye Surgery -. You can the amount you pay for eye surgery with defective vision, such as laser eye surgery or radial keratotomy
- Fertility Enhancement -. Strategies to help overcome the inability to have children, such as in vitro fertilization (including temporary storage of eggs or sperm) and surgery to reverse sterilization before surgery
- Guide Dog or other services Animal -. The cost of the purchase, training and maintenance services expensive for visually-impaired, hearing-impaired, or a person with other physical disabilities
- health insurance plan deductibles, co-pays and co-insurance
- Health Institute -. Only if prescribed by a doctor and the doctor issued a statement that the treatment is necessary to reduce the physical or mental defect or disease
- hearing -. The cost of the exam, hearing aids and batteries used to operate there are HSA qualified expenses
- Laboratory Fees
- Lead-Based Paint removers L -. Only performance (not repair) of the surface of the poor condition of the households with children
- attorneys –
- Lodging -. A person traveling with them who receive medical care can allow up to $ 100 per night ($ 50 per person), for example, a parent traveling with a sick child
- Medical Conferences – Access and transportation to medical conference if medical conference touches chronic illness of yourself, spouse, or dependent phone. The majority of the time the conference will be spent attending sessions of medical information.
- Drugs – Prescribed drugs and medicines alone. (Note: Starting 01/01/2011 Patient Protection and Affordable Care Act says that HSA funds can no longer be used for over-the-counter drugs without a doctor’s prescription.)
- Nursing Home -. Medical reasons
- Osteopath -. Fees paid to the Osteopath considered HSA qualified expenses
- Oxygen – Oxygen and oxygen equipment to relieve breathing problems caused by a medical condition
- Physical Exam –
- Pregnancy Test Kit
- psychiatric -. Includes the cost of supporting the mentally ill subject of a specially equipped medical center
- Special Education – Medical expenses you pay on medical recommendations for teaching the child by a teacher who is specially trained and qualified to work with children with learning disabilities due to mental or physical impairment. You can also include tuition, meals and accommodation costs of attending school which provides special education to help children overcome learning disabilities. Your doctor will measure attendance. This includes:
- Teaching Braille for visually impaired
- Teaching lip reading hearing
- remedial language training to correct a condition caused by a birth defect
- quit smoking Programs -. Nicotine patches or gum are not covered, unless prescribed by a doctor
- Telephone -. The cost of TTY and TDD, including repair and maintenance
- Transportation – Transportation costs used primarily for and essential to medical care. Including, bus, taxi, train, plane, ambulance. Also includes the transportation cost of a parent will be traveling with a child and a nurse, as required by a patient who is traveling to get medical care and is unable to travel alone.
- Weight Loss Programs – Only if there is a treatment for certain diseases diagnosed by a physician (ie, obesity, hypertension, etc.). You can not include a membership to the gym, health club, or spa, these are not considered HSA qualified expenses.
- Wheelchair -. Auto Cassette or wheelchair used mainly to reduce illness or disability, and not just to provide transportation to and from work
- Wig -. A wig purchased on a doctor for mental health patient who has lost all his hair from disease
Legal fees necessary to allow for treatment of mental illness are allowed, but guardianship, estate fees, or other charges that are not necessary for medical care are not allowed.
Annual exam and diagnostic tests are HSA qualified expenses even if you are not ill.
Most remember hospitalization, doctors visits and prescription drugs are HSA qualified expenses, but as you can see, the list of things that are considered HSA qualified expenses is very long. Read the IRS publication 502 for more information. HSA is designed to help you pay for medical expenses, so save the receipts to be sure you can use the tax money and maximize your tax write-offs.
However, if you use HSA funds for something that is not considered HSA qualified expenses, you will not only get no tax break, but also to pay a 20% penalty. Make sure that you also know the items that are not considered HSA qualified expenses.