Can I Buy an Air Purifier With My HSA?

Health Savings Accounts (HSAs) offer a tax-advantaged savings vehicle for healthcare expenses. These accounts provide a triple tax benefit: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free. Understanding which expenses qualify is important for maximizing HSA benefits. This article clarifies whether an air purifier can be considered an eligible expense.

HSA Eligibility for Medical Expenses

The Internal Revenue Service (IRS) outlines criteria for qualified medical expenses. An expense must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease. This includes expenses for affecting any structure or function of the body. The IRS provides guidance on these definitions in publications like IRS Publication 502.

Expenses for general health improvement, personal convenience, or overall well-being without a specific medical purpose are not eligible. To qualify, an expense must directly address a physical or mental defect or illness. This distinction is important for individuals seeking to use their HSA funds.

Various items, from acupuncture to X-rays, are explicitly listed as qualified medical expenses. Many products or services, however, require a determination of “medical necessity” to be eligible. Account holders must ensure an expense meets IRS guidelines.

Air Purifiers and Medical Necessity

An air purifier is not considered an HSA-eligible medical expense unless prescribed by a licensed healthcare provider. Its primary purpose must be for the treatment, diagnosis, mitigation, or cure of a specific medical condition or disease. Without this direct medical link, an air purifier is seen as a general health item.

To establish medical necessity, a Letter of Medical Necessity (LMN) is required. This document, issued by a physician, nurse practitioner, or other licensed healthcare provider, explains why the air purifier is medically required for the patient’s condition. The LMN serves as documentation for HSA eligibility.

The LMN must contain specific details to be valid. It should state the patient’s diagnosed medical condition, such as severe asthma, allergies, or a chronic respiratory illness. The letter must also explain how the air purifier will treat, mitigate, or prevent the symptoms or progression of that diagnosed condition.

The LMN should specify the type or features of the air purifier needed, if relevant, and the duration for which the device is medically necessary. This documentation ensures the expense aligns with IRS requirements for medical equipment. Securing this letter is a necessary step before purchasing an air purifier with HSA funds.

Purchasing and Documentation

Once medical necessity is established through a Letter of Medical Necessity (LMN), there are several ways to use HSA funds for an eligible air purifier. One common method is to use an HSA debit card directly at the point of sale. Many HSA providers issue these cards for convenient access to funds.

An individual can also pay for the air purifier out-of-pocket using personal funds and then reimburse themselves from their HSA. This reimbursement can occur even years after the initial purchase, provided the expense was incurred after the HSA was established. This strategy allows HSA funds to continue growing tax-free.

Regardless of the payment method, record-keeping is important. The IRS requires account holders to maintain records demonstrating that distributions were exclusively for qualified medical expenses. Retain the original LMN, detailed receipts showing the purchase date, item, and cost, and any supporting medical documentation that corroborates the diagnosis and medical necessity.

These documents should be kept for at least three to seven years in case of an IRS audit. Failing to provide proper documentation could result in the distribution being considered taxable income and potentially subject to a 20% penalty.