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Which medical expenses can be paid for with tax-deductible VEBA funds?
The following is a partial list of eligible/potentially eligible/ineligible medical expenses. If you have any questions about an
item’s eligibility, please contact SelectAccount® customer service at (651) 662-5065 or toll free at 1-800-859-2144.
For over-the-counter expenses, see the.
Eligible medical expenses ________________________________________________________________________________
Patient responsibilities under the medical, dental or Eyeglasses – prescription sunglasses/safety glasses vision plan solely because of the plan’s deductible, copay (coinsurance), reasonable and customary Fertility treatments (e.g., artificial insemination, Physical exams (routine, medical, wel -child) Fluoridation treatment at a dental office Prescription drugs (prescription drugs imported from Preventive care screenings (e.g., mammogram, colo- Childbirth/lamaze classes (related to birth) Chiropractic treatments (e.g., adjustments) Shipping and handling fees for eligible expenses Individual counseling (counseling must be performed to al eviate or prevent a physical or mental defect or Coinsurance amounts (health, dental or vision) Convalescent home (for medical treatment only) Transportation expenses relative to health care (corresponding medical documentation requested) Dental procedures, non-cosmetic (e.g., X-rays, Occlusal guards to prevent teeth grinding Diabetic supplies (e.g., insulin, syringe, monitor, Organ transplant (including donor’s expenses) Potentially eligible medical expenses (requires Letter of Medical Necessity from health care provider) ____________________________
Medical conference admission and transportation Guide dog/service animal (purchase, care for, Mental y handicapped residential or group home Automobile modifications (capital expense) Prescription drugs that also have a cosmetic purpose (e.g., Retin-A, Rogaine, Botox, Propecia) Breast reduction surgery that is medical y necessary Home improvements (e.g., exit ramps, widening Special education costs for dependents with Cosmetic surgery (for repair or reconstruction after disabilities Stem cel , harvesting and/or storage of accident or surgery or for correction of birth defect) Household products/improvements to treat al ergies Telephone/television equipment for hearing-impaired Weight loss program (if prescribed by a physician for Lodging (away from home for outpatient care – a specific medical condition – excludes food) Ineligible medical expenses ______________________________________________________________________________
Prescription drugs and medicines imported from Late fees (e.g., for late payment of bil s for Lodging while attending a medical conference Cosmetics, hygiene products and similar items Marijuana or other control ed substances in Transportation costs of disabled individual Feminine hygiene products (e.g., tampons) Non-prescription eyeglasses, sunglasses, safety Eligible medical expense
Capital expense
Medical expenses that can be reimbursed through your VEBA A capital expense is an improvement and/or special equipment added include services and supplies incurred by you or your eligible to a home or other capital expenditure that may be eligible if the dependents for the diagnosis, treatment or prevention of disease or primary purpose is medical care. A Letter of Medical Necessity is for the amounts you pay for transportation to get medical care.
required from your health care provider. To submit your capital expense, you must have an appraisal of your home within one year In general, deductions allowed for medical expenses on your federal prior to the installation and an appraisal after the installation to income tax according to Internal Revenue Code Section 213(d) determine the value added to the home. The amount eligible is the may be reimbursed through your VEBA. You cannot deduct your difference between the cost of the expense and the increase in medical expenses on federal income tax that have been reimbursed the additional value of your home. If the improvement/special through your VEBA. It is possible that changes in the IRS rules can equipment is used by individuals other than the person needing it for affect the eligible, potentially eligible, and/or ineligible expense medical care, the eligible amount should be divided by the number of people using the item. Example: A ramp is purchased for $3,000 Potentially eligible medical expenses
and prior to installation your house is appraised at $100,000. After In order to determine eligibility for potentially eligible items, installation of the ramp your house is appraised for $101,000. SelectAccount requires a Letter of Medical Necessity from The amount that is eligible under your VEBA is $2,000. your health care provider. You can obtain a Letter of Medical For assistance in calculating capital expense, the Capital Expense Necessity to have your health care provider complete at Worksheet is available at If you have
questions about a capital expense, please contact customer service for a more detailed explanation.
These lists are intended to serve as a quick reference and are provided with the understanding that SelectAccount is not engaged in rendering tax advice. For more detailed information, please refer to IRS Publication 502, “Medical and Dental Expenses,” Catalog Number 15002Q. Publications can be ordered from the IRS by calling 1-800-TAX-FORM (1-800-829-3676). If tax advice is required, seek the services of a competent professional.


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