Allowable Expenses for HSA and FSA Plans

IRS Publication 502 provides a list of specific services, treatments, and costs that qualify for the deduction. HSA, FSA, and QSEHRA funds can be used tax free to cover these costs:

Laboratory Fees Lactation Expenses Lead-Based Paint Removal Learning Disability Legal Fees Paid to Authorize Treatment for Mental Illness Lifetime Care—Advance Payments Lodging Long-Term Care Medical Conferences Concerning Illnesses of the Taxpayer or Taxpayer’s Dependents Nursing Home Nursing Services Osteopath Oxygen and Oxygen Equipment Pregnancy Test Kit Prescription Medical Physical Examination Prescribed Treatment at a Health Institute Prosthesis Psychiatric Care Psychoanalysis	Psychologist Services Qualified Long-Term Care Insurance Premiums (limited; HSAs only) Special Education Sterilization Stop-Smoking Programs Surgery Telephone Equipment for the Hearing or Speech Impaired Therapy Transplants Transportation Trips for Medical Care and Treatment Vasectomy Vision Correction Surgery Weight-Loss Program (if needed to treat a disease) Wheelchair Wig X-ray

Laboratory Fees
Lactation Expenses
Lead-Based Paint Removal
Learning Disability
Legal Fees Paid to Authorize Treatment for Mental Illness
Lifetime Care—Advance Payments
Lodging
Long-Term Care
Medical Conferences Concerning Illnesses of the Taxpayer or Taxpayer’s Dependents
Nursing Home
Nursing Services
Osteopath
Oxygen and Oxygen Equipment
Pregnancy Test Kit
Prescription Medical Physical Examination
Prescribed Treatment at a Health Institute
Prosthesis
Psychiatric Care
Psychoanalysis

Psychologist Services
Qualified Long-Term Care Insurance Premiums (limited; HSAs only)
Special Education
Sterilization
Stop-Smoking Programs
Surgery
Telephone Equipment for the Hearing or Speech Impaired
Therapy
Transplants
Transportation
Trips for Medical Care and Treatment
Vasectomy
Vision Correction Surgery
Weight-Loss Program (if needed to treat a disease)
Wheelchair
Wig
X-ray

Costs That Do Not Qualify for the Medical Expense Deduction

Babysitting or child care for a healthy child
Controlled substances
Cosmetic surgery
Dancing or swim lessons
Diaper service
Electrolysis or hair transplants
Funeral expenses
Future medical care
Health club dues
Household help
Illegal operations or treatments
Insurance premiums (with some exceptions). However, note that QSEHRA funds can be used to pay for a participant’s health insurance premiums.
Maternity clothes
Medicines and drugs from other countries
Nonprescription drugs
Nutritional supplements
Personal use items
Teeth whitening
Weight loss programs (if not for a diagnosed disease or condition)

Allowable Expenses for HSA and FSA Plans

Costs That Do Not Qualify for the Medical Expense Deduction

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