Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) offer a valuable way to pay for healthcare expenses with pre-tax dollars. While many people are aware that these accounts can be used for copays, medical equipment, and prescriptions, fewer realize that Can Hsa Be Used For Travel Expenses related to medical care. This guide will provide a detailed overview of eligible travel expenses, how to receive reimbursement, and other lesser-known eligible expenses to help you maximize the benefits of your HSA.
HSA and FSA Eligibility for Travel Expenses: The Essentials
It’s true: you can use your HSA or FSA funds for certain healthcare-related travel costs. This provides a significant opportunity to save money on essential medical trips. Keep in mind that this does not apply to Dependent Care FSAs or Limited Purpose FSAs.
Woman examining documents related to FSA and HSA travel expenses, highlighting their importance for medical trips.
To determine if your travel expenses are eligible, consider these three crucial questions:
- Is the treatment necessary? The travel must be for a required medical treatment, not simply a desirable one.
- Is the treatment reasonable? While you don’t need to choose the cheapest option, extravagant travel arrangements (like private jets) are unlikely to be covered.
- Is the treatment eligible? The IRS determines which expenses qualify. Refer to IRS Publication 502 for detailed information.
What Travel Expenses Are HSA Eligible?
Several types of travel-related expenses may be eligible for HSA or FSA reimbursement. The key requirement is that the primary purpose of the trip must be to receive medical care. This applies to expenses related to your own care or a dependent’s care.
Detailed list of eligible travel expenses when using an HSA for medical travel.
Common eligible travel expenses include:
- Rideshare services (Uber, Lyft), public transportation, taxis, trains, ferries, and rental cars
- Tolls, if the toll route is the only way to reach the medical facility
- Parking fees at the medical facility
- Fuel costs for using your personal vehicle
In contrast, the following travel expenses are generally not eligible:
- Vehicle maintenance, repairs, or depreciation
- Personal expenses like meals during the trip
- Auto insurance
- Tickets or penalty fees
- Travel unrelated to medical care (e.g., a vacation with a doctor’s appointment)
How to Get FSA Mileage Reimbursement
Unlike some other eligible expenses, you typically can’t use your FSA debit card directly for travel costs. Instead, you’ll need to pay out-of-pocket and submit your receipts for reimbursement. Using a credit or debit card for these payments can help maintain a clear record of the transactions.
Essential documentation includes receipts showing the provider, date, and amount paid. Keep these receipts organized, as missing documentation may lead to denial of reimbursement.
To claim fuel cost reimbursement, maintain a mileage log along with gas receipts. You can calculate your exact fuel costs based on mileage or use the IRS’s standard mileage rate.
Person meticulously logging mileage and fuel costs for healthcare travel reimbursement, ensuring accurate documentation.
As of early 2020, the IRS standard mileage rate for medical travel reimbursement was $0.17 per mile. Utilize tools like Google Maps to accurately document your mileage. Always check the IRS website for the latest mileage rates.
Using Your HSA for Travel Reimbursement
If you have an HSA, you can also use it for eligible travel expenses, although the process might differ slightly from using an FSA.
Person submitting receipts for FSA travel reimbursement, highlighting the importance of keeping detailed records.
Since you own your HSA, you might be able to use your HSA debit card to pay for eligible travel expenses directly. However, if this isn’t possible, pay out-of-pocket and reimburse yourself later using your HSA funds.
Regardless of the payment method, always keep your receipts as proof of eligible expenses in case of an IRS audit.
Other Less Common HSA Eligible Expenses
Beyond travel, HSAs and FSAs can cover a range of other less commonly known expenses:
- Guide dogs: The costs associated with buying, training, and maintaining a guide dog.
- Braille books and magazines: The difference in cost between regular and Braille versions.
- Drug addiction treatment and counseling: Including detoxification, counseling, and self-help groups.
- Certain at-home test kits: Such as fertility tests and hearing tests.
- Nursing home care: Many skilled nursing facilities qualify.
Collage of unusual HSA expenses, including guide dogs, braille books, and addiction treatment.
Some expenses that typically do not qualify include:
- Diapers and diaper services (unless treating a specific medical condition)
- Weight loss programs (unless a Letter of Medical Necessity is provided)
- Special food (unless a Letter of Medical Necessity is provided)
- Health club dues (unless used to treat a specific medical condition)
Maximize Your HSA Benefits
Understanding that can HSA be used for travel expenses and other healthcare-related costs allows you to fully leverage your account and reduce your out-of-pocket healthcare spending. Since HSA and FSA funds are pre-tax, using them for eligible expenses translates to significant savings.
By familiarizing yourself with eligible expenses and proper reimbursement procedures, you can ensure you’re maximizing the value of your tax-advantaged accounts. Don’t leave money on the table – take advantage of your HSA or FSA to pay for qualified medical travel and other healthcare costs.
