Yes, you can use your Health Reimbursement Arrangement (HRA) funds for gas expenses, but only when the fuel is used for transportation to and from eligible medical care. This specific use ensures the expense aligns with IRS guidelines for qualified medical expenses.
Understanding HRA Eligibility for Fuel
HRAs are employer-funded accounts designed to help employees pay for out-of-pocket medical expenses. While they offer flexibility, not all expenses are covered. For gas to be eligible, it must directly relate to accessing medical services.
Here's what qualifies:
- Transportation to Medical Appointments: This includes trips to a doctor's office, hospital, clinic, lab for tests, or a therapy session (e.g., physical therapy, mental health counseling).
- Mileage Rate: The amount you can claim for fuel related to medical travel is typically based on the standard medical mileage rate set by the IRS, which covers the cost of operating your vehicle, including gas.
Important Note: Gas for general commuting, errands, or personal travel unrelated to specific medical care is not a qualified expense and cannot be reimbursed by your HRA.
How Fuel for Medical Care is Covered Across Accounts
Fuel expenses for medical transportation are widely recognized as eligible expenses across various tax-advantaged health accounts, not just HRAs.
| Account Type | Eligibility for Medical Gas Expenses |
|---|---|
| HRA | Yes, for transportation to/from medical care |
| FSA | Yes, for transportation to/from medical care |
| HSA | Yes, for transportation to/from medical care |
Practical Insights for Reimbursement
To ensure your gas expenses for medical travel are properly reimbursed, consider these practical steps:
- Maintain Detailed Records: Keep a meticulous log of your medical travel. This should include:
- The date of travel.
- The starting and ending addresses (e.g., home to doctor's office).
- The purpose of the trip (e.g., "annual physical," "dentist appointment," "physical therapy session").
- The total mileage for the medical trip.
- Proof of the medical appointment (e.g., appointment confirmation, doctor's note, or bill for services received).
- Understand Your HRA Plan: While the general eligibility for medical gas is consistent, specific HRA plans might have unique submission processes or require certain types of documentation. Always check your plan's guidelines.
- Reimbursement vs. Direct Payment: Depending on your HRA setup, you might use your HRA card directly for certain eligible expenses, or you might pay out-of-pocket and then submit a claim for reimbursement with the necessary documentation. Gas expenses are typically reimbursed after the fact with proof of medical travel.
By adhering to these guidelines and keeping thorough records, you can effectively use your HRA funds for eligible gas expenses related to your medical care.
