What are considered qualified medical expenses for an HSA?

Qualified medical expenses for a Health Savings Account (HSA) largely adhere to the guidelines set by the IRS, which often align with unreimbursed medical expenses that are typically deductible on Schedule A of Form 1040. This means that expenses that an individual incurs directly, without reimbursement from insurance, may be eligible for tax-free withdrawal from an HSA.

Using the IRS guidelines, qualified medical expenses include items such as doctor visits, hospital care, surgeries, and certain prescribed medications, as long as they are not reimbursed by any health plan or insurance. This aligns with the idea that these expenses are necessary for medical care and can help reduce the individual’s taxable income when they contribute to their HSA.

In contrast, options such as prescription medication only or any out-of-pocket expenses do not encompass the broader spectrum of what can be considered qualified medical expenses. Additionally, expenses covered by insurance plans cannot be claimed since HSAs are meant to assist with direct, unreimbursed medical expenses. Thus, the inclusion of unreimbursed medical expenses on Schedule A as the qualifying standard effectively captures the essence of qualifying medical expenses for tax advantages associated with HSAs.