You are responsible for keeping documentation of your HSA expenses for as long as your tax return is considered open and subject to an audit (typically three years), or as long as you maintain the HSA, whichever is longer.
Acceptable records include your insurance carrier’s Explanation of Benefits (EOB) for services covered under your High-Deductible Health Plan, as well as receipts for items or services paid with HSA funds, such as vision or dental care.
The IRS requires that your records demonstrate:
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Distributions were used exclusively to pay or reimburse qualified medical expenses,
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The qualified expenses had not been reimbursed from another source, and
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The same expenses had not been taken as an itemized deduction in any year.¹
1. “About Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.” Internal Revenue Service, May 1, 2020. https://www.irs.gov/forms-pubs/about-publication-969.
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