Question

Is deducting medical expenses paid with an HSA allowed?

Answer

 

No, deducting medical expenses paid with an HSA is not allowed. If you use the health savings account (HSA) to pay your medical expenses then you do not get to itemize those medical deductions.

Medical expenses paid with an HSA account will cannot be applied toward the percentage of adjusted gross income (AGI) you must spend before you can make medical deductions. This is because your HSA money is pre-taxed.

Health Savings Account (HSA) is a medical savings account available to people enrolled in a high-deductible health plan. The money deposited into the HSA is not subject to federal income tax at the time of the deposit is made. Additionally, HSA funds will accumulate year-to-year if the money is not spent. HSA funds may be used to pay for qualified medical expenses at any time. Other benefits Health Savings Accounts:

  • You are eligible for a tax deduction for contributions you made to your HSA even if you do not itemize your deductions.
  • Contributions to made to your HSA by your employer may be excluded from your gross income.
  • The contributions remain in your account until you use them.
  • The interest earned on the account is tax-free. 

Related Topics

Related Resources

I had a balance due for my federal and state 2016 taxes. I paid both balances in 2017. Can I clai

If you had a balance due for your federal and state taxes last year, can you deduct what you had to pay on this years taxes? Learn more from the tax e

I have a question about business travel deductions. My employer does not reimburse travel expenses. Is there a meal allo

When can you take a meal allowance as part of business travel deductions? Learn more from the tax experts at H&R Block.

Student Loan Interest Deduction

Learn how to deduct student loan interest with H&R Block. Get information about qualified education expenses and see if a student loan tax deduction applies to you.

I would like to learn more about the mortgage insurance deduction. Is there a mortgage insurance premiums deduction I w

Learn if your entire mortgage insurance premium is tax deductible from the tax experts at H&R Block.