You can get your spine aligned on a tax free basis with an HSA.
HSA's, or Health Savings Accounts, are tax preferred accounts similar to 401(k) plans. Money deposited in the account is done so on a tax-free basis. Earnings and interest on the account aren't taxed. But money from an HSA that isn't spent on qualified medical expenses is taxed as income, plus an additional 10 percent penalty. Chiropractic care is a qualified medical expense under IRS guidelines.
Publications
The rules governing the tax treatment of HSAs are found in IRS Publication 969. That publication however, refers readers to publication 502 for a list of qualified medical expenses. The services of a chiropractor are listed in Publication 502 as a qualified medical expense.
Deducting Medical Expenses
Publication 502 governs the deductibility of medical expenses. Taxpayers whose medical expenses exceed 7.5 percent of their adjusted gross income can deduct the difference for tax purposes. HSA users can use their funds regardless of whether they have passed the 7.5 percent threshold. Services paid for with an HSA cannot be counted toward the 7.5 percent threshold calculation.
High Deductible
To be eligible for an HSA, an insured person must be enrolled in a high-deductible health plan. Medical coverage under these plans doesn't begin until a patient has met a deductible. As the name suggests, the deductibles can be pretty high. Not all plans cover chiropractic services. If your plan doesn't, using a chiropractor may not count toward your deductible.
Call Ahead
In theory, a person with a health savings account can save enough money in healthy years to meet the deductible in sick years. Using HSA funds to pay for chiropractic care that isn't covered by a deductible could lead you to deplete your account, while facing huge bills in the event of another medical emergency. Call your provider to determine if your insurance plan covers chiropractors.
Tags: qualified medical, medical expenses, medical expense, percent threshold, qualified medical expense, qualified medical expenses
