Are Strollers HSA Eligible?
Understand HSA eligibility for strollers. Learn the IRS guidelines for medical expenses and when specialized needs qualify for coverage.
A Health Savings Account (HSA) provides a tax-advantaged way to save and pay for qualified medical expenses. Many individuals with an HSA consider using these funds for various healthcare-related purchases. A common query involves whether everyday items like strollers can be considered eligible expenses.
Understanding General HSA Eligibility
The Internal Revenue Service (IRS) defines a medical expense as costs paid for the “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” Items used for general health and well-being, rather than for a specific medical condition, typically do not qualify. Therefore, a standard stroller, primarily used for convenience or general transportation, does not usually meet the IRS criteria for an eligible medical expense.
When a Stroller Qualifies as a Medical Expense
A stroller can be an HSA-eligible expense if it is primarily for and essential to the medical care of the account holder, their spouse, or a dependent. This often applies when the stroller is considered Durable Medical Equipment (DME). To qualify as DME, an item must be medically necessary, have an expected lifetime of at least three years, be used for a medical reason, and not be useful to someone who is not sick or injured.
For example, a specialized stroller designed to provide therapeutic support for a child with a severe mobility impairment or a specific chronic condition can qualify. Such a stroller directly addresses a diagnosed medical need, serving a function beyond general transport. The distinction rests on whether the item’s primary purpose is to alleviate or treat a specific physical or mental disability or illness.
Substantiating Medical Expense Claims
If a specialized stroller meets the criteria as a medical expense, proper documentation is required for HSA reimbursement. The IRS mandates substantiation for all HSA distributions, especially for items with a dual purpose or those not automatically eligible, often requiring a Letter of Medical Necessity (LMN).
A licensed healthcare provider, such as a doctor or physical therapist, must issue the LMN. This letter should clearly state the diagnosed medical condition and explain how the specialized stroller is essential for treating or mitigating that condition. It should also specify that the item is not for general health purposes. Maintaining detailed records, including the LMN and purchase receipts, is important for tax purposes in case of an IRS audit.