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Category: Adjustments

Who can I pay medical expenses for using funds from my HSA or MSA?

Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. These are explained in Publication 502, Medical and Dental Expenses. However, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deduction, they do qualify as expenses for HSA or MSA purposes.

Qualified medical expenses are those incurred by the following persons:

  1. You and your spouse.
  2. All dependents you claim on your tax return.
  3. Any person you could have claimed as a dependent on your return except that:
    • The person filed a joint return for 2013,
    • The person had gross income of $3,900 or more, or
    • You, or your spouse if filing jointly, could be claimed as a dependent on someone else's return.

Please Note: You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA.