Can You Buy Running Shoes With HSA?
Can your HSA cover running shoes? Learn the precise medical criteria and essential documentation required for eligible healthcare expenses.
A Health Savings Account (HSA) is a tax-advantaged savings account for qualified medical expenses. It offers a triple tax advantage: contributions are tax-deductible, funds grow tax-free, and withdrawals for eligible medical expenses are also tax-free. Many wonder if HSA funds can cover various health-related purchases, such as running shoes.
Understanding HSA Eligibility
To understand HSA coverage, it is important to grasp the Internal Revenue Service (IRS) definition of “medical care.” Internal Revenue Code Section 213 states medical care expenses are amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses for general health, fitness, or cosmetic purposes are not eligible unless they directly address a specific medical condition.
Qualifying Running Shoes as a Medical Expense
Running shoes are not considered an HSA-eligible expense because they are used for general health, exercise, or recreational purposes. The IRS views these items as beneficial for overall well-being, but not primarily for treating or preventing a specific illness or condition.
However, running shoes could qualify as a medical expense if a licensed medical professional, such as a doctor or podiatrist, prescribes them as medically necessary to treat a specific diagnosed medical condition, injury, or disease. For example, specialized footwear might be necessary for severe plantar fasciitis, specific orthopedic issues, or other conditions requiring particular foot support or cushioning to alleviate symptoms or prevent further injury. This exception emphasizes that a direct medical link and a professional recommendation are required for eligibility.
The Letter of Medical Necessity
When an expense like running shoes is not HSA-eligible but is prescribed for a medical condition, a Letter of Medical Necessity (LMN) is required. An LMN is a written statement from a licensed healthcare provider, such as a doctor, podiatrist, or chiropractor, confirming that a specific item or service is medically necessary to treat or alleviate a diagnosed condition. This letter must clearly state the diagnosis and explain how the running shoes are required for treatment or prevention. The LMN should also detail how the shoes’ specific features, such as specialized arch support or cushioning, address the patient’s condition and may include a recommended duration for their use. Obtain this letter before purchasing the shoes to ensure proper documentation for potential reimbursement.
Using Your HSA Funds for Qualified Expenses
Once an expense’s eligibility, especially one requiring a Letter of Medical Necessity, is established, HSA funds can be used. Individuals can use a dedicated HSA debit card for direct payment, if the vendor accepts it. Alternatively, pay out-of-pocket and then reimburse yourself from the HSA account. This offers flexibility.
Maintaining records is important when using HSA funds. Retain the original receipt for the running shoes, the Letter of Medical Necessity, and any related doctor’s notes or prescriptions. This documentation is essential for tax purposes and in the event of an IRS audit, as proving expense eligibility rests with the taxpayer. The IRS does not pre-approve expenses, so record-keeping ensures compliance and helps avoid potential penalties.