A health savings account is a dedicated savings account that can only be used to pay for health and medical care-related services.
As long as you use the money in the HSA to pay for medical or health-related services, then all withdrawals are tax-free and tax-deductible when applicable. And as long as the money sits in the HSA it is never taxed.
The average American has $2,800 in their HSA and they mainly use it to pay for doctor’s visits.
Most people think an HSA can only be used to pay for medical visits. But here are four surprising things your pay with an HSA.
Be sure to double-check with your tax adviser as plan rules can vary.
Emotional support, service, and guide dogs
If you are legally blind, have a debilitating physical disability, hearing impaired, suffering from PTSD, then you can use an HSA to pay for an emotional support dog.
The money in your HSA can pay for all costs related to the purchase, obedience training, and ongoing maintenance of emotional support, guide, or service dog.
Health-care related travel
If you travel long-distance to coordinate and organize the health care or surgery of a loved one, then you may be able to pay for meals and lodging via an HSA. Just double-check with your accountant or tax adviser before you do.
Alternative medical treatments
There are numerous kinds of medical treatments that traditional medical insurance won’t pay for or reimburse.
However, you should now be able to pay for weight-loss and diet programs, acupuncture, and chiropractor services through an HSA.
Even more everyday items
Have a balance and don’t know what to stock up on? Here’s a short list of everyday items that qualify as HSA expenses you will find in most drug stores.
- Over-the-counter pain relievers, cold medicines and stomach remedies
- Air purifiers and filters
- Feminine hygiene products
- Birth control
- First aid supplies, including bandages
- Orthotics, orthopedic braces and wraps
- Pregnancy and fertility tests
- Contact lenses and supplies
- Psychologist visits
- Acne products