Smart Ways Small Business Owners Can Use HSA Funds

If you have a Health Savings Account (HSA), you hold one of the most powerful tax-advantaged tools available. An HSA offers triple tax benefits—contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free. But what exactly can you spend HSA funds on?

Qualifying Medical Expenses for HSA Funds

The IRS provides a detailed list, but here are the most common:

• Doctor & Dental Visits – Routine or emergency care.

• Lab Work – Including blood tests, X-rays, and screenings.

• Prescriptions – Medications prescribed by your healthcare provider.

• Over-the-Counter Medications – Pain relievers, allergy medicine, and more.

• Annual Physicals – Preventative care counts!

• Physical Therapy – Rehabilitation for injury or surgery recovery.

Why Tucson Business Owners Should Care

For entrepreneurs who pay their own health insurance, an HSA can be a strategic way to reduce taxable income while saving for current and future medical needs.

Pro Tips

• Keep receipts for all expenses—this is key if the IRS requests proof.

• Use HSA funds for qualified expenses only to avoid penalties.

• Consider letting funds grow for long-term healthcare costs in retirement.

Final Thoughts

Whether you’re a freelancer, business owner, or employee, your HSA can stretch your healthcare dollars further and help you save on taxes.