An eligible expense is defined as those expenses paid for care as described in Section 213 (d) of the Internal Revenue Code. Below are two lists which may help determine whether an expense is eligible.These lists are to serve as a quick reference and are provided to you with the understanding that Olympic Financial Marketing is not engaged in rendering tax advice. For more detailed information, please refer to IRS Publication 502 titled, Medical and Dental Expenses, Catalog Number 15002Q. Publications can be ordered directly from the IRS by calling 1-800-TAX FORM. If tax advice is required, you should seek the services of a competent professional.
| Tax Deductible Medical Expenses (Check with your agent or policy to determine which apply to your insurance deductible) |
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| Abdominal supports Acupuncture Air Conditioner (when necessary for relief from difficulty in breathing) Alcoholism treatment Ambulance Anesthetist Arch Supports Artificial limbs Autoette (when used for relief of sickness/disability) Birth Control Pills (by prescription) Blood tests Blood transfusions Braces Cardiographs Chiropractor Christian Science Practitioner Contact Lenses Contraceptive Devices (by prescription Convalescent home (for medical treatment only) Crutches Dental Treatment Dental X-rays Dentures Dermatologist Diagnostic fees Diathermy Drug Addiction therapy Drugs (prescriptions) |
Elastic hosiery (prescription Eyeglasses Fees paid to health institute prescribed by a doctor FICA and FUTA tax paid for medical care services Fluoridation unit Guide dog Gum treatment Gynecologist Healing services Hearing aids and batteries Hospital bills Hydrotherapy Insulin treatment Lab tests Lead paint removal Legal fees Lodging *away from home for outpatient care) Metabolism tests Neurologist Nursing (including board and meals) Obstetrician Operating room costs Ophthalmologist Optician Optometrist Oral surgery Organ transplant (including donor’s expense) Orthopedic shoes Orthopedist Osteopath |
Oxygen and oxygen equipment Pediatrician Physician Physiotherapist Podiatrist Postnatal treatments Practical nurse for medical services Prenatal care Prescription medicines Psychiatrist Psychoanalyst Psychologist Psychotherapy Radium Therapy Registered nurse Special school costs for the handicapped Spinal fluid test Splints Sterilization Surgeon Telephone or TV equipment to assist the hard of hearing Therapy equipment Transportation expenses (relative to health care) Ultra-violet ray treatment Vaccines Vasectomy Vitamins (if prescribed) Wheelchair X-rays |
| Eligible Over-the-Counter Drugs | ||
| Antacids Allergy Medications Pain relievers Cold medicine Anti-diarrhea medicine Cough drops and throat lozenges |
Sinus Medications and Nasal sprays Nicotine medications and nasal sprays Pedialyte First aid creams Calamine Lotion |
Wart removal medication Antibiotic ointments Suppositories and creams for hemorrhoids Sleep aids Motion sickness pills |
| Non-Deductible Medical Expenses | |
| Advancement payment for services to be rendered next year Athletic Club membership Automobile insurance premium allocable to medical coverage Boarding school fees Bottled Water Commuting expenses of a disabled person Cosmetic surgery and procedures Cosmetics, hygiene products and similar items Funeral, cremation, or burial expenses Health programs offered by resort hotels, health clubs, and gyms Illegal operations and treatments Illegally procured drugs |
Non-prescription medications Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits Scientology counseling Social activities Special foods and beverages Specially designed car for the handicapped other than an autoette or special equipment Stop-smoking programs Swimming pool Travel for general health improvement Tuition and travel expenses for a problem child to a particular school Weight loss programs |
| Ineligible Over-the-Counter Drugs | |
| Toiletries (including toothpaste) Acne treatments Lip balm (including Chapstick or Carmex) Cosmetics (including face cream and moisturizers) Suntan lotion Medicated shampoos and soaps |
Vitamins (daily) Fiber supplements Dietary supplements Weight loss drugs for general well being Herbs |
Health insurance premiums may not be paid for with HSA funds, unless the plan meets one of these three requirements:
- A health plan during any period of continuation coverage required under any federal law.
- A qualified long-term care insurance contract.
- A health plan during a period in which the individual is receiving unemployment compensation under any Federal or State law.