Qualified Medical Expenses: The Complete List

Qualified Medical Expenses: The Complete List

The IRS defines Qualified Medical Expenses (QMEs) in Publication 502. Here's a comprehensive guide. Common Qualified Expenses: • Doctor visits and specialist appointments • Hospital services and surgery • Prescription medications • Over-the-counter medications (since CARES Act 2020) • Menstrual care products (since CARES Act 2020) • Dental care: cleanings, fillings, crowns, braces, dentures • Vision care: eye exams, glasses, contacts, LASIK • Mental health: therapy, counseling, psychiatry • Physical therapy and chiropractic care • Lab tests, X-rays, and imaging • Ambulance services • Medical equipment: crutches, wheelchairs, blood sugar monitors • Hearing aids and batteries • Fertility treatments (IVF, etc.) • Acupuncture • Substance abuse treatment • Home modifications for medical reasons NOT Qualified (Common Misconceptions): • Cosmetic surgery (unless medically necessary) • Gym memberships and fitness programs • Teeth whitening • General wellness supplements (unless prescribed) • Health insurance premiums (except COBRA, long-term care, and Medicare after 65) • Toiletries and personal hygiene products What happens if you use HSA funds for non-qualified expenses? Before age 65: Income tax + 20% penalty After age 65: Income tax only (no penalty) Pro tip: Save every receipt for qualified expenses. You can reimburse yourself from your HSA at any time — even years after the expense. This lets your HSA investments grow longer.