Are First Aid Kits and Supplies HSA Eligible?

Health Savings Accounts (HSAs) are tax-advantaged savings mechanisms for healthcare expenses. Many wonder about the eligibility of common health-related purchases, such as first aid kits. Knowing what qualifies for HSA use helps account holders make informed spending decisions and ensures compliance with tax regulations.

General HSA Eligibility for Medical Expenses

The Internal Revenue Service (IRS) outlines criteria for eligible medical expenses. Medical care generally covers costs for the diagnosis, cure, mitigation, treatment, or prevention of disease. It also includes expenses affecting any body structure or function. These expenses must be primarily for medical care, not general health, hygiene, or cosmetic purposes. HSA funds must be used exclusively for qualified medical expenses to remain tax-free.

First Aid Kit Items That Qualify

Many common first aid kit items are HSA-eligible due to their direct medical purpose. Products like bandages, gauze, and medical tape qualify for wound care and protection. Antiseptic wipes, antibiotic ointments such as Neosporin, and burn creams are also eligible because they prevent infection and treat injuries. Over-the-counter pain relievers, hydrocortisone cream, and sting/bite relief treatments are covered for specific ailments, and diagnostic tools like thermometers are included to monitor health conditions. The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 expanded eligibility to include over-the-counter medications without a prescription.

First Aid Kit Items That Do Not Qualify

Conversely, some items often found in first aid or personal care kits do not qualify. Products considered primarily cosmetic or decorative, such as novelty bandages, are not eligible. General household items like cotton balls, tissues, or everyday personal care products like scented lotions and soaps typically do not qualify unless specifically formulated for a medical or first aid purpose. Items for general well-being or comfort, such as certain vitamins or supplements, are generally ineligible unless prescribed by a medical practitioner to treat a diagnosed condition.

Using Your HSA for First Aid Purchases

Using HSA funds for eligible first aid items is straightforward. Account holders can use a dedicated HSA debit card directly at the point of sale. Many HSA providers also offer online payment options or allow checks for medical expenses. Alternatively, individuals can pay out-of-pocket and reimburse themselves from their HSA later, provided the expense was incurred after the HSA was established. Maintaining detailed records, including receipts for all purchases, is important. These records demonstrate that distributions were exclusively for qualified medical expenses and should be retained for at least three years from the tax filing date for potential IRS verification.