Are vet bills HSA or FSA eligible?

Short answer: No. Standard veterinary bills for a pet are not eligible for payment or reimbursement from a Health Savings Account (HSA) or a Flexible Spending Account (FSA). The one exception is a trained service animal.

Why vet bills do not qualify

The IRS only allows HSA and FSA funds to be used for qualified medical expenses of you, your spouse, and your tax dependents. A pet is not a person or a tax dependent, so its care (exams, vaccines, surgery, medication, boarding, pet insurance premiums) does not count, even when the animal is an emotional support animal.

Quick reference

What counts as a service animal

IRS Publication 502 allows the cost of buying, training, and maintaining a guide dog or other service animal that assists a person who is visually impaired, hearing impaired, or has another physical disability. That includes food, grooming, and veterinary care needed to keep the animal healthy enough to do its job. An emotional support animal is not treated as a service animal for this purpose.

What happens if I pay a vet bill with my HSA anyway?

The withdrawal is treated as a non-qualified distribution. You owe regular income tax on the amount, plus an additional 20% tax if you are under age 65. After 65 the 20% tax goes away, but the income tax still applies.

What to do instead

• Pay vet bills with after-tax money or a pet insurance plan.
• Keep your HSA dollars for your own medical, dental, and vision costs, where they stay tax-free.
• If you have a service animal, keep records showing the animal's role and the expense, in case of an IRS question.

Related: Can I use HSA funds to pay for my Emotional Support Animal?

Talk to a licensed iHealthAgents advisor

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Call us at (312) 726-6565 or email help@ihealthagents.com.

This article is for general educational purposes and is not tax or legal advice. Consult a tax professional about your situation. See IRS Publications 502 and 969.