Use your account wisely
Most costs related to living with a disability qualify as an eligible expense.
The money from your account can be used for everyday needs or an unexpected turn of events. The eligible expenses are geared towards improving health, independence and quality of life.
- Living expenses
- Employment, training and support
- Assistive technology
- Personal support services
- Health, prevention and wellness
- Financial management
- Administrative services
- Legal fees
- Oversight and monitoring
- Funeral and burial costs
- and more
Keep track of your expenses
We don’t need to see your receipts but the IRS might. You should keep documentation of your purchases in case the IRS asks for it, and you have to provide proof of how you spent the money from your account, which you can track with your prepaid card.
What if I buy something that doesn’t qualify?
You’ll have to pay tax on the growth, plus a 10% penalty on earnings for non-eligible expenses. Also, keep in mind that any non-qualified withdrawals are considered income for that month and could count against your eligibility for SSI benefits or Medicaid.