PSC Accounting and Tax Service LLC

Did you know Your HSA may be able to cover sunscreen, first aid kits, aloe vera and sometimes smart watches or oura rings?

IRS Rules for HSA purchases in 2026-you may be surprised to find some of these things may be covered under HSA Guidelines.

Before we dive into our list, let's cover the 2026 IRS rules for a purchase to be considered "HSA-qualified."

The expense must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of a specific health condition for you, your spouse, or your tax dependents. Otherwise, you may owe penalties and taxes on non-qualified purchases.

Here's a handy guide to help you figure out if your purchase could be HSA-eligible:

Check the "HSA store." Before you head to the register, use your HSA provider's mobile app. Many now let you scan a product's barcode to confirm eligibility. You can also browse pre-vetted items at the HSA Store or Amazon's HSA/FSA shop.

Identify items requiring an LMN. Some travel aids, like high-grade compression socks or specialized orthopedic pillows, may require a letter of medical necessity (LMN) from your doctor to qualify. This letter details why the purchase is medically necessary for your or your spouse's/dependent's condition.

Keep digital backups. Although your HSA debit card may be accepted at major pharmacies, the IRS requires proof of the item purchased, not just the total spent. Snap a photo of your receipt immediately and save it in your digital files.

Did you receive an IRS CP53E letter after filing your federal tax return? If so, you’re not alone. IRS is mailing out more of these notices this year. IRS generally sends these letters to taxpayers whose Forms 1040 show a refund due,but the bank information is invalid, missing or rejected. The letter asks taxpayers
to add or update their bank account information after setting up an online account with IRS. Now that IRS’s policy is one of not issuing tax refunds via paper check and instead generally requiring direct deposit of refunds, more individual taxpayers than ever before are receiving these CP53E notices after filing their tax returns.
The Service is sending some CP53E notices in error, leading to confusion among taxpayers and preparers. For instance, these letters are landing in mailboxes of filers who weren’t owed refunds but instead paid taxes with their filed 1040s. IRS sends most CP53E notices automatically, so it is likely to make some mistakes.

Team bonding-game time Wednesday’s are back!!!

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May the 4th be with you! (couldn't be helped)