What Happens If You Don't Submit Receipts for HSA Card?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while also enjoying tax benefits. When you have an HSA, you are typically issued a debit card that allows you to pay for qualified medical expenses directly from your account.

But what happens if you don't submit receipts for your HSA card transactions? Let's explore:

Consequences of Not Submitting Receipts:

• IRS Audit Risk: The IRS requires you to keep records of your HSA expenses, including receipts. Failing to submit receipts when requested could increase your risk of being audited.
• Verification Issues: Without receipts, it may be difficult to verify that the expenses charged to your HSA card were indeed for qualified medical costs.
• Potential Repayment: If you cannot provide documentation to prove that your expenses were HSA-eligible, you may be required to repay that amount to the HSA.

Best Practices for Managing HSA Receipts:

• Keep all receipts for HSA-eligible expenses, no matter how small.
• Organize receipts by date and category for easy reference.
• Consider using digital tools or apps to store and manage your receipts.

By staying organized and submitting receipts promptly, you can avoid any potential issues with your HSA card transactions and ensure compliance with IRS regulations.

Ignoring the need to submit receipts for your HSA card transactions can lead to some unexpected consequences. While Health Savings Accounts (HSAs) are designed to help you save for those medical expenses, proper documentation is crucial.