Does the payment for Nanny care can be deducted under HSA expense?

[tgatif]

I pay nanny to take care of my 1 year old child.  Can this expense be deducted under HSA when I do not have FSA?

[AmyT]

Distributions from a health savings account (HSA) must be used to pay  qualified medical expenses , or the disbursements are subject to income tax and may be subject to an additional 20% penalty.

A list of qualified medical expenses can be found in IRS publication 502 (available here:  https://www.irs.gov/pub/irs-pdf/p502.pdf)

Some dependent care expenses may be deductible if your child is disabled.  For more information on this, please see IRS publication 503 (available here:  https://www.irs.gov/pub/irs-pdf/p503.pdf).  

If you child is not considered disbled, then payments for his/her care (including a nanny) are not considered to be qualified medical expenses and cannot be paid tax- (or penalty-) free using your HSA.