If you have a Medical Savings Account (MSA), you can use your MSA funds tax-free to pay for qualified medical expenses. These are healthcare costs that meet IRS requirements and are generally related to diagnosing, treating, preventing, or managing a medical condition.
Common qualified medical expenses include:
- Hospital visits
- Doctor visits
- Home health care services
- Other eligible medical expenses that would normally qualify as medical itemized deductions on your tax return
Keep in mind that you can't claim a tax deduction for medical expenses that were already paid with tax-free MSA distributions. In other words, you can't receive two tax benefits for the same expense.