Can an HSA be Used for Dependent Care? Exploring the Benefits of Using Your HSA for Dependent Expenses

Health Savings Accounts (HSAs) are a valuable tool for saving money on medical expenses, but can they also be used for dependent care?

Yes, you can use your HSA funds to pay for dependent care expenses, such as childcare, adult daycare, and other qualifying expenses for dependents under the age of 13 or dependents who are physically or mentally incapable of caring for themselves.

Using your HSA for dependent care offers several benefits:

• Contribute pre-tax dollars to your HSA, reducing your taxable income
• Withdraw tax-free funds for qualified dependent care expenses
• Save money on daycare, nanny, or other care services for your dependents

Be sure to keep detailed records of your dependent care expenses and always check that the expenses meet the IRS guidelines for eligible dependent care costs.

Health Savings Accounts (HSAs) are not just for medical expenses; they can also be utilized effectively for dependent care needs.