If there are adults in your life you're caring for, you know the financial burden that can come along with this responsibility. The good news is, you may be able to use money in a health savings account (HSA) to help alleviate some of your costs.

An HSA is a tax-advantaged account you can invest in and utilize if you have a qualifying high-deductible health plan. You can claim a deduction for contributions when you put money into the HSA and can also take the money out tax-free if you're using it for eligible medical expenses. This can exclude expenses for certain adult dependents in some cases.

You can use your HSA funds to pay for the care of adult dependents if they count as a qualifying child, which means they are considered a dependent on your tax return and they are under 19, under 24 and full-time students, or are permanently and totally disabled. Adult dependents who don't meet these criteria but who are covered on your family high-deductible plan or a high-deductible plan of their own can also deposit money into their own HSA account that can be used for care. 

If you meet these requirements and you have an HSA, here are three key ways that this account could help you to better provide for your loved one. 

Doctor and patient in an exam room.

Image source: Getty Images.

1. HSAs can cover home healthcare or nursing home expenses

If your adult dependent needs nursing home services or home care services primarily for medical reasons, you should be able to use HSA funds to pay the premiums for these expenses. Since a home health aide comes at an average cost of $5,148 per month as of 2021 and a semi-private room in a nursing home averaged $7,908 that same year according to the Genworth Cost of Care Survey, being able to pay for these expenses with pre-tax funds can be invaluable. 

2. You can also use HSA funds to pay for medical devices

If your adult dependent requires medical devices, these can be paid for with HSA funds as well. This includes medical devices necessary for the diagnosis, cure, treatment, or prevention of a medical issue. If a device is used to help treat a medical condition or monitor the status of one, it should be considered an eligible expense. This does not, however, include devices necessary for general health such as a fitness-tracking bracelet or electric toothbrush. 

Some examples of medical devices that could potentially be paid for with HSA funds include blood pressure monitors, canes, wheelchairs, CPAP machines, diabetes monitors, and more. 

3. Home improvements can be paid for with HSA funds if they're necessary for medical reasons

In some cases, it is possible to pay for home improvements with money from an HSA if those improvements are necessary for medical reasons. Things like a wheelchair ramp or grab bars for the shower would be some examples of home improvement costs that you could pay for with funds from your health savings account. 

Being able to use HSA funds to cover these costs can give you some much-needed financial help and enable you to spend less out of pocket in providing for your adult dependent.  Every penny counts as a caregiver, so it's worth looking into whether an HSA can work for you.