For the purposes of a Health Savings Account: qualified medical expenses would generally qualify on the Schedule A for the medical and dental expenses deduction. Further explanation of qualified medical expenses on the Schedule A may be found in Publication 502, Medical and Dental Expenses.
Does my non-prescription medication count as a medical expense?
Non-prescription medicines, for HSA purposes, are not considered qualified medical expenses. The drug or medicine may qualify as a medical expense for HSA purposes only, if the medicine or drug:
- Requires a prescription.
- Can be obtained without a prescription (such as an over-the-counter drug or medicine) but a doctor still prescribes it, OR
- It is insulin.
Can I use my expenses I incurred prior to establishing my HSA?
If you incur expenses before your HSA is established, they do not qualify for medical expenses. The date on which a HSA is established is determined by individual state law. Please reference Publication 969, for more information about qualified medical expenses and determining when an HSA is established.
The following may acquire qualified medical expenses:
- You and your spouse.
- All dependents you claim on your tax return.
- Any person you could have claimed as a dependent on your return except that:
- The person filed a joint return for the current tax year,
- The person had gross income of $4,200 or more, or
- You, or your spouse if filing jointly, could be claimed as a dependent on someone else's return for the current tax year.
Please Note: You are not able to deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA.