Air Conditioner: HSA Eligibility

Air conditioner for general use not eligible.

The IRS rules surrounding LMNs are complex and limited to individual facts and circumstances. Please be sure to discuss all LMN expenses with your plan administrator first.

Treas. Reg. '1.213-1(e)(1)(iii), Private Letter Ruling 8009080

How does air conditioning treat medical conditions?

Air conditioning regulates temperature in an indoor space, and some air conditioner designs may contain air filters that purify air to remove dust, allergens and other particulates. While air conditioners are not designed exclusively to treat a specific medical condition, they may be eligible, if certain conditions are met.

Air conditioning reimbursement or a tax deduction may be related to the device's ability to help alleviate symptoms for those who suffer from allergies or other respiratory illnesses. Running an air conditioner allows individuals to keep their windows closed and prevent an influx of outdoor allergens, while keeping the home comfortable at the same time. Additionally, those who live in warmer climates and suffer from lung-related conditions can experience difficulties due to poor air quality in these areas, so air conditioners can play a role in helping treat their conditions and improving their quality of life (FSAstore.com).

How is air conditioning reimbursement eligible?

The primary purpose of the air conditioner must be to treat or alleviate a medical condition. To show that the expense is primarily for medical care, a Letter of Medical Necessity recommending the item to treat a specific medical condition is normally required. If it is attached to a home (such as central air conditioning), only the amount spent that is more than the value added to the property will qualify.