Non-Eligible HSA Expenses: When a Doctor’s Note Isn’t Enough

Some companies are misleading consumers into purchasing non-eligible HSA products, which if claimed on your tax return, could eventually be challenged by the IRS.

closeup of a pink stethoscope and a pile of fake US dollars, on a blue background
(Image credit: Getty Images)

Maxing out your health savings account (HSA) contributions can significantly lower your tax bill, but using those funds for non-eligible items could get you into trouble with the IRS. And the agency may challenge certain purchases, even when consumers have a doctor’s note to justify them. 

The fact is that sometimes, a physician's note isn't enough to make certain products eligible The IRS is warning taxpayers that some marketing campaigns misrepresent what is HSA-eligible and what isn’t.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.