Do We Have to Keep Receipts for HSA Account?

One common question that comes up when managing a Health Savings Account (HSA) is whether you need to keep receipts for your HSA account purchases. Keeping receipts for HSA expenses is not always required, but it is highly recommended for several reasons.

When it comes to HSA expenses, the Internal Revenue Service (IRS) does not typically require you to submit receipts when withdrawing funds from your HSA account. However, it is essential to keep all receipts and documentation related to your HSA expenses for your records and possible future verification.

Here are some key points to consider regarding keeping receipts for your HSA account:

• Tracking Expenses: Keeping receipts allows you to track your HSA expenses accurately, which can be helpful for budgeting and understanding your healthcare costs.
• Auditing Purposes: In case of an IRS audit or verification of HSA expenses, having receipts will serve as proof of the eligible medical expenses you have incurred.
• Reimbursement: If you plan to reimburse yourself from your HSA account for past medical expenses, having receipts will be crucial to ensure the expenses qualify under HSA guidelines.

While the IRS may not require receipts for every HSA transaction, it is still a good practice to keep them organized and easily accessible. Consider using digital or cloud-based storage options to store and categorize your receipts for future reference.

When managing your Health Savings Account (HSA), a frequent question arises: Do you really need to keep receipts for your expenses? While the IRS does not mandate receipt submission for HSA withdrawals, it’s a smart practice to retain them to ensure you're always well-prepared.