The IRS is hesitant to come up with a definitive list of things that you can or cannot use your HSA funds for. This is most likely because medical and health-promoting services and technology evolve more rapidly than the IRS can keep up with. As soon as they publish a list, people are likely to come up with dozens of new services that can fall into either category.
Your best bet is to refer to IRS Publication 502 as a guideline. This publication gives some examples of what kinds of medical expenses are tax-deductible, as well as some examples of those that are not. You can use your HSA funds to pay for medical expenses identified as "qualified" or tax-deductible.
Some examples of qualified medical expenses include:
- Eyeglasses and contact lenses
- Prescription drugs
- Prosthetics
- Services animals
- Substance abuse treatment programs
- Smoking cessation programs
Some examples of ineligible medical expenses include:
- Cosmetic surgery
- Gym memberships
- Non-prescription medication
- Weight-loss programs not prescribed for a specific medical condition
