Health Care Non-Deductible Ineligible Expenses

The IRS and the Federal Courts have deemed certain medical and healthcare expenses to be non-qualified for reimbursement through Health Savings Accounts (HSA). If you make a withdrawal for non-qualified health care expenses, a penalty of 10% plus ordinary income taxes will be due on the amount used. Please note that DataPath, Inc. does not intend this list to be comprehensive tax advice. For more detailed information, please consult IRS Publication 502 or see your tax advisor.

Non-Deductible Medical Expenses

Advance 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
Maternity clothes
Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits
Social activities
Special foods and beverages
Stop-smoking programs
Travel for general health improvement
Weight loss programs

Non-Deductible Over-the-Counter Drugs

The IRS and the Federal Courts have deemed certain over-the-counter (OCT) drugs to be non-qualified for reimbursement through Health Savings Accounts (HSA). If you make a withdrawal for non-qualified health care expenses, a penalty of 10% plus ordinary income taxes will be due on the amount used. Please note that DataPath, Inc., does not intend this list to be comprehensive tax advice. For more detailed information, please consult IRS Publication 502 or see your tax advisor.

Toiletries (including toothpaste)
Acne treatments
Lip balm
Cosmetics (including face cream and moisturizer)
Suntan lotion
Medicated shampoos and soaps

Vitamins (daily)
Fiber supplements
Dietary supplements
Weight-loss drugs for general well being
Herbs

Click the links below for more information.

Health Care Deductible Expenses

Over-the-Counter Deductible Drugs

Non-Deductible Medical Expenses

Over-the-Counter Non-Deductible Drugs