But what’s considered a qualified medical expense? Your contributions go in tax-free, grow tax-free and come out tax-free when you use them for qualified medical expenses. In 2020, a person with single coverage can contribute up to $3,550 per year or $7,100 for family coverage.Īnd those contributions come with some pretty great tax benefits too. Now you can’t just dump a ton of money into an HSA. You’re 18 years or older and no one can claim you as a dependent on their tax return.Īn HSA allows you to save for current and future medical expenses. The maximum out-of-pocket expense is $6,900 for individuals and $13,800 for families.ģ. In 2020, that looks like having a health insurance plan with a minimum deductible of $1,400 for single coverage or $2,800 for family coverage. You’re enrolled in a high-deductible health plan. These triple tax-advantaged savings accounts are designed specifically to cover medical expenses.īut in order to open an HSA, you need to meet a few requirements.ġ. But with high-deductible health plans ( HDHPs) gaining in popularity, more and more people are taking advantage of HSAs. Right now, you can see your doctor from the safety and comfort of your home and use your tax-free HSA dollars to pay for the appointment. Now over-the-counter drugs (Hello, allergy medication! Goodbye, seasonal sneezing!) and menstrual products are considered qualified medical expenses, and you can use your HSA bucks to pay for them. With the CARES Act in place, items that were once considered non-qualifying medical expenses are now eligible expenses. There’s no doubt that coronavirus has got us all thinking more about our health and the things we need to take care of it. The list of qualifying medical expenses just got bigger. That means you’ve got an extra three months to add money to your HSA to cover 2019 qualified medical expenses.Ģ. You have until Jto make 2019 HSA contributions.īecause the IRS has extended the federal tax-filing date from April 15, 2020, to July 15, they’ve also extended the 2019 HSA contribution deadline. If you’re enrolled in an HSA, here’s what you need to know:ġ. Not only will the government start sending coronavirus relief checks to qualifying folks, they’re also making some shifts around health insurance to release that pressure valve even more. The federal government approved the CARES Act, a $2.2 trillion stimulus package, in an attempt to keep the lid on the U.S. How Does the Federal Coronavirus Stimulus Package Affect HSAs? So, let’s check out what qualifies, what might qualify and what definitely doesn’t so you can put your HSA funds to use wisely. And you might be surprised just how many things are considered an HSA eligible expense. That’s right, everything from hearing aids to your visit to the chiropractor can be covered by the money you contribute to your HSA. Pop quiz! Know what reading glasses, thermometers, a midwife and an ambulance all have in common? If you guessed that they’re all qualified medical expenses (QMEs) through a health savings account (HSA), then you’re a winner!

Hsa approved items