Best practices for health savings account (HSA) recordkeeping
Unlike a flexible spending account, you’re not required to submit receipts or documentation to WEX when you use your HSA to pay for eligible expenses. You also don’t have to submit them with your tax return.
However, the IRS does require that you keep them with your tax records. If you’re ever audited, you’ll have to show that your HSA funds were only used for eligible expenses. Any expenses that cannot be substantiated are subject to income tax and penalties.
Your records should be sufficient to show that:
- HSA distributions were used exclusively to pay for or reimburse qualified health expenses
- The qualified health expenses had not been previously paid or reimbursed from another source
- The health expenses had not been taken as an itemized deduction in any year
You can use the following type of records:
- Hard-copy receipts from healthcare providers (bills from the doctor’s office or hospital, receipts from the pharmacy, etc.)
- Bank statements from your HSA
- Claims information from your Anthem.com or Sydney Health app account
- Claims information or explanation of benefit (EOB) statements from your insurance provider
