• HSA withdrawals for qualified medical expenses are non-taxable.Medical Care image by JASON WINTER from Fotolia.com
  
  Withdrawals from a Health Savings Account (HSA) are non-taxable if they apply to any purpose on an extensive list of qualified medical expenses. These qualified HSA expenses cover expenditures for both chronic and temporary ailments plus small and major treatments. Even some common recurring items related to medical conditions are qualified HSA expenses. However, the medical expenses must be for the taxpayer, spouses filing joint tax returns, dependents on the tax return, and those who qualify as dependents but filed their own tax returns.
  
  

Deductible Expenses

• Medical expenses that can be deducted on Schedule A of Form 1040 are all qualified for HSA withdrawal purposes. Among these expenses are payments made to medical care providers. This includes physical examinations, surgery, laboratory fees and diagnostic tests. Abortions and vasectomies are included but not elective cosmetic surgeries. Services also qualify as HSA expenses when provided by optometrists, dentists, chiropractors, psychiatrists, psychologists, acupuncturists, physical therapists, nurses, ambulance services, fertility clinics and organizations for treatment of alcohol and drug addiction. Expenses for special education programs and weight loss programs are also eligible if related to diagnosis and treatment by a physician. Costs for nursing homes and long-term care of the chronically ill are also qualified HSA expenses.
  
  HSA qualified expenses include supplies and devices with a medical use such as prescription drugs, bandages, crutches, hearing aids, eyeglasses, contact lenses, prosthetics, oxygen, pregnancy test kits, wheelchairs, and guide dogs for the sight impaired. The hearing impaired may include the costs for devices and services related to telephone and television use.
  
  Transportation costs to obtain any medical services or supplies—including reimbursement at a standard mileage rate for automobile usage—are qualified HSA expenses. Other eligible expenses are overnight lodging for medical treatment away from home. HSA expenses include modifications required to a home for medical purposes.
  
  

Non-Prescription Medications

• Although non-prescription medications are not eligible for medical expense deduction on Schedule A, they are qualified expenses for non-taxable HSA withdrawals. This includes over-the-counter medications for any illness or injury. Some examples are antiseptics and remedies for the common cold.
  
  

Insurance Premiums

• There are several types of insurance premiums that qualify as medical expenses for non-taxable HSA withdrawals. The premiums must be for policies that cover either hospitalization, prescription drugs, dental care and vision care that are not employer-paid; long-term care insurance; health care continuation coverage, such as coverage under COBRA; health care coverage while receiving unemployment compensation; or Medicare and other health care coverage for those age sixty-five or older—other than premiums for a Medicare supplemental policy, such as Medigap.