Can You Use Your HSA for an Emotional Support Animal? Let’s Clear Up the Confusion

Emotional support animals (ESAs) can be life-changing for people struggling with anxiety, depression, PTSD, and other mental health conditions. But while the comfort they provide is priceless, the practical side of caring for an ESA is anything but—adoption fees, food, vet bills, and other essentials can add up quickly.

When faced with these mounting costs, you may wonder if your health savings account (HSA) can help lighten the load. It’s a fair question; after all, these accounts are designed to cover out-of-pocket medical costs. But can you use HSA for emotional support animal expenses?

In this guide, we’ll break down whether HSA funds can be used for ESA-related expenses, what the IRS actually allows, and what documentation might help you get financial support for your emotional support animal.

What Is an HSA, and What Expenses Does It Cover? 

Health savings accounts (HSAs) are tax-advantaged accounts designed to help you save for qualified medical expenses. If you have a high-deductible health plan, an HSA allows you to set aside pre-tax dollars to cover certain medical costs. 

The Internal Revenue Service (IRS) considers anything you spend on the diagnosis, cure, or treatment of any part or function of the body a qualified medical expense. But while this is great news for your overall health plan, when it comes to using HSA funds for your ESA expenses, the guidelines are specific and somewhat restrictive.

Does HSA Cover Emotional Support Animal Expenses?

Generally, the IRS allows HSA reimbursement for service animals (think seizure-alert dogs or guide dogs for the visually impaired). ESAs, on the other hand, don’t automatically qualify for this perk. Even though more and more people bring these cute companions into their lives, the IRS has yet to officially claim them as a qualified expense.

Although they’re both assistance animals, the IRS differentiates between service and emotional support animals based on what the animal does and how it’s trained:

• Service animals: These animals are typically dogs, and they’re trained to perform specific tasks that assist a person with a physical or psychiatric disability. Because of their specialized training, service animals are protected under the Americans with Disabilities Act (ADA) and other federal laws. This legal status often extends to broader health-related accommodations, including some HSA-eligible expenses
• Emotional support animals: ESAs are prescribed by a licensed mental health professional (LMHP) to provide emotional relief for qualifying conditions like depression. But because they’re not trained to perform specific tasks, they’re ineligible for ADA protections, placing their status in a very different legal category

As a result, general expenses related to ESAs—such as adoption fees, ESA letter costs, food, grooming, and routine veterinary care—are typically considered personal expenses and aren’t HSA-eligible.

When ESA Expenses Might Qualify

Because ESAs are a bit of a gray area when it comes to HSA expenses, you might still be able to use your HSA to cover certain costs, but only in specific situations.

To potentially make this happen, you’ll need a letter of medical necessity (LMN) from a healthcare provider. Similar to your official ESA letter, which you need to make your pet an ESA in the first place, this letter should:

1. Confirm your diagnosed mental health condition
2. Clearly state that the ESA is part of your treatment plan
3. Outline which ESA-related expenses are considered medically necessary

Potentially Qualifying Expenses

Costs directly tied to what your ESA is helping you with are more likely to qualify for HSA use than general pet expenses like food or grooming. Here are a few examples that could make the cut in some cases:

Still, even with an LMN, the IRS doesn’t automatically approve any related expenses as qualified. Each reimbursement request is evaluated individually, and it’s never guaranteed that your furry roommate’s costs will be deemed ESA-eligible.

Tips To Improve Your Chances of HSA Coverage for ESA Expenses

While you can’t be certain that your ESA expenses will qualify for HSA reimbursement, following these steps can help strengthen your case:

• Keep detailed records: Save all receipts and documentation for ESA-related expenses. This will help provide transparency when potential deductions are made
• Submit your LMN and ESA letter to your HSA administrator: Handing the relevant documentation directly to your HSA administrator will keep them in the loop from the get-go. Plus, they’d be able to tell you early on if you’re unlikely to qualify based on the provided paperwork
• Consult a tax professional: As ESA expenses under the HSA are still pretty vague, a tax expert can help you navigate IRS rules more easily and improve your chances of approval

What Happens if You Use HSA Funds for Ineligible ESA Expenses

Using HSA money for non-qualified expenses, even by mistake, has some important tax implications:

• You must report the distribution to the IRS
• A 20% penalty is added (unless you’re over 65 years old)
• The amount becomes taxable income

What’s more, incorrect claims can also trigger audits. It’s no fun if this happens, as you’ll need thorough records and may owe back taxes, interest, and additional penalties. That’s another reason it’s best to talk to a tax advisor before making a claim.

Alternative Ways To Reduce Your ESA Expenses

From what you’ve seen so far, your HSA might not be the best choice for ESA financial breaks. Luckily, there are other avenues you can explore to make your adorable companion’s vet bills and ESA process costs feel less like a burden:

1. Pet insurance plans
2. Fundraising
3. Flexible spending account (FSA)
4. Dedicated ESA letter services

Pet Insurance Plans

While not a medical deduction, insurance can be a real safety net when your ESA needs medical attention and you can’t foot the bill.

Here’s what pet insurance might cover:

• Emergency vet visits
• Diagnostic testing
• Surgery or hospitalization
• Some medications

Before you take advantage of this option, make sure to read the fine print. Coverage can vary between plans, and not all services are automatically included.

Fundraising

Yes, crowdfunding can really help with ESA costs. If you’re open to sharing your story, sites like GoFundMe allow friends, family, your community, and anyone else who finds your goal compelling to contribute.

Fundraising for emotional support animals usually focuses on:

• Adoption or rescue fees
• Training costs
• Unexpected medical bills

If you decide to take this route, being honest, specific, and personal in your ask will make a big difference. Take Birdie, an ESA dog who needed surgery, as an example. After their owner posted a short, heartfelt explanation of why they needed a financial boost, Birdie was able to get the necessary medical help, partly from the raised funds.

Flexible Spending Account (FSA)

While it’s similar to an HSA in that it helps you fund out-of-pocket healthcare costs, a flexible spending account (FSA) might be true to its name in the case of ESA expenses—definitely more flexible.

You may not be able to cover adoption fees or general animal care costs this way, but any costs related to getting an ESA in the first place might go over more smoothly than with an HSA. However, you’ll still need an LMN from your healthcare provider to use your FSA funds for your furry buddy’s costs.

Dedicated ESA Letter Services

Making your emotional support animal’s status official is one of the top costs of having an ESA. Because this process requires an ESA letter from a licensed mental health professional, costs can add up quickly. After all, therapy sessions can cost up to $300 a pop, and if you need to see your therapist more than once before they issue the paperwork, well, you do the math.

A much more cost-effective way to get an ESA letter is to turn to a dedicated, reliable provider like Your Service Animal. You won’t need multiple pricey sessions to get the job done, and because it’s an online platform, you can say goodbye to any side costs like commute as well.

Get Easy Access to an Official ESA Letter With Your Service Animal

Potentially using your HSA for ESA expenses hinges on proper documentation, and this starts with a legitimate ESA letter. Your Service Animal connects you with licensed mental health professionals who understand the rules, write affordable and compliant ESA letters, and do it all through a fast, user-friendly platform.

Whether you’re looking to potentially claim eligible ESA expenses or just want to secure the housing accommodations you deserve, Your Service Animal comes through with these benefits:

Getting Started Is Easy

Ready to secure your pet’s ESA status and unlock the potential of HSA coverage? Here’s how to get started:

1. Find out if you’re a good fit for an ESA letter with our online quiz
2. Schedule an online appointment with a licensed mental health practitioner in your state
3. Attend the online call and receive your ESA letter if clinically appropriate
4. Receive a full refund if the therapist doesn’t issue an ESA letter or your landlord rejects your letter