As winter begins, don’t let a health emergency ruin your fun! Did you sprain your knee playing tennis? You can deduct the Ace Bandage and ibuprofen from your HSA. Did you get sunburnt playing at the beach? You can deduct after-sun gel or lotions with Aloe with your HSA. And next time you can even pay for sunscreen with your HSA. Or maybe it is just your allergies going haywire. You can deduct your allergy medicine with your HSA. And let’s not forget all the scraped knees. You can also deduct Band-Aids from your HSA account.
The IRS has expanded the eligible costs that are allowed to paid out of your HSA account. They include:
· Telehealth and other remote care services.
· Over the counter medicines such as allergy medicine, heartburn medicine and aspirin.
· Medical equipment like heating pads, ice packs, blood pressure machines, and thermometers.
· Mental health counseling services
· Dental, vision, and chiropractic services
· Acupuncture
· Transportation to and from doctor’s visits
· Feminine Hygiene products
· Anything prescribed by a doctor
What is not deductible:
· Vitamins
· Personal hygiene items such as tooth paste and deodorant
· Weight Loss Programs (unless prescribed by a doctor)
· Health Clubs
Remember you get to deduct your contributions to your HSA and you do not have to pay tax on any contributions made by your employer. All the money in your HSA account will grow tax free just like a Roth IRA. When you take money out of your HSA as long as it is for Medical expenses or anything listed above, it is not taxable to you.
Max out your HSA account ($7,750 for family plans and $3,850 for an individual plan) and go out there and have some fun in the sun!
Karena J. Sylvester, CPA
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