Can You Use HSA Funds to Pay Care Credit?

If you're considering using your HSA funds to pay for healthcare expenses, you might be wondering if Care Credit is a viable option. HSA funds can be a great tool for managing medical costs, but it's essential to know the guidelines regarding what expenses are considered eligible.

Care Credit is a financing option that provides a line of credit for healthcare expenses not typically covered by insurance. While Care Credit can be a helpful solution for paying for services like dental work, cosmetic procedures, or vision care, it's important to understand if HSA funds can be used to cover those costs.

According to IRS guidelines, HSA funds can be used to pay for qualified medical expenses as defined in Section 213(d) of the Internal Revenue Code. These expenses generally include services and treatments that are intended to alleviate or prevent a physical or mental health condition.

While Care Credit payments could potentially fall under this category, it's crucial to ensure that the services being financed are indeed considered qualified medical expenses. Some procedures or services may not meet the criteria set by the IRS, so it's always best to consult with a tax professional or HSA administrator to confirm.

When considering using HSA funds for Care Credit payments, it's essential to assess whether the healthcare expenses you're targeting qualify under the IRS guidelines.