Can I Use My HSA for Toothpaste?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. Contributions, earnings, and withdrawals for eligible expenses are tax-free, helping individuals manage healthcare costs from routine visits to unexpected events.

General Rules for HSA Eligibility

To be considered a qualified medical expense for HSA purposes, an item or service must primarily be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. IRS Publication 502 outlines this definition. Expenses that are merely beneficial to general health, rather than addressing a specific medical condition, do not qualify.

For example, while certain vitamins might be part of a healthy diet, they do not qualify as medical expenses unless prescribed by a physician to treat a specific illness or condition. The Internal Revenue Service (IRS) states that an expense must relate directly to medical care as defined by the tax code. This distinction helps determine what can be paid for with tax-free HSA funds.

Common Eligible Expenses

Many common healthcare-related costs are considered qualified medical expenses and can be paid for using an HSA. These often include payments for doctor’s office visits, hospital stays, and prescription medications. Dental care, such as cleanings, fillings, and orthodontia, along with vision care, including eye exams, eyeglasses, and contact lenses, are also eligible.

Certain over-the-counter (OTC) medications and products, like pain relievers, cold and flu remedies, and menstrual care products, are eligible without a prescription. Medical equipment, such as crutches, wheelchairs, and blood glucose monitors, along with diagnostic devices, also qualify.

Items Not Covered by an HSA

Many everyday personal care products and general hygiene items are not considered qualified medical expenses and therefore cannot be purchased with HSA funds. Items like toothpaste, regular soap, shampoo, and cosmetics fall into this category. These products are used for general hygiene or cosmetic purposes, not primarily for the diagnosis, cure, mitigation, treatment, or prevention of a specific medical condition.

Even if an item contributes to overall well-being, it must meet the strict definition of a medical expense to be eligible for HSA reimbursement. For instance, while good oral hygiene is important, standard toothpaste is not designed to treat a specific dental disease, distinguishing it from a prescribed fluoride treatment or a medicated mouthwash for a diagnosed condition.

Confirming Eligibility and Using Your HSA

Individuals can confirm the eligibility of specific items or services by referencing official sources. IRS Publication 502 is the primary resource for detailed information on qualified medical expenses. Many HSA administrators also provide comprehensive lists or search tools on their websites or mobile applications, and some products in stores are labeled “HSA/FSA eligible” to indicate their qualifying status.

When using HSA funds, individuals have several options. Many HSAs come with a debit card that can be used directly at the point of sale for eligible expenses. Alternatively, individuals can pay out-of-pocket for qualified expenses and then submit a claim to their HSA administrator for reimbursement. It is important to retain detailed records, such as receipts and Explanation of Benefits (EOB) statements, to substantiate all HSA withdrawals in case of an IRS audit.