Editorial disclosure: AirCaps manufactures smart captioning glasses. We include our product in this guide alongside general HSA/FSA guidance. We aim to be straightforward about eligibility rules, requirements, and where to consult a tax professional for your specific situation.

Can You Really Use HSA or FSA Money for Smart Glasses?

Yes — if the smart glasses serve a medical purpose. Over 59.3 million Americans are covered by Health Savings Accounts (Devenir/ABA Banking Journal, 2024), with total HSA assets reaching nearly $147 billion. Meanwhile, 47% of FSA holders forfeit money every year — an average of $422 per person, totaling roughly $4.5 billion in lost funds (EBRI via Money.com, 2024). Smart glasses designed as assistive devices for hearing loss, like captioning glasses, fall under IRS-recognized medical expense categories. With the right documentation, you can pay for them using pre-tax health funds.

This guide walks through the IRS rules, what qualifies, how to get a Letter of Medical Necessity, and step-by-step instructions for purchasing HSA/FSA-eligible smart glasses.

Key Takeaways

• Smart glasses used for hearing loss or communication disabilities qualify as HSA/FSA-eligible medical expenses under IRS Publication 502
• 47% of FSA holders forfeit an average of $422 annually — smart glasses are a qualifying way to use those funds before they expire (EBRI, 2024)
• A Letter of Medical Necessity from your audiologist or doctor strengthens your eligibility claim and is sometimes required by plan administrators
• AirCaps captioning glasses ($599, HSA/FSA eligible) cost less than one-third the average hearing aid price of $2,694 (HearingTracker, 2026)
• HSA contribution limits for 2026 are $4,400 (individual) and $8,750 (family) — more than enough to cover smart glasses

Table of Contents

• What Does the IRS Say About HSA and FSA Eligible Expenses?
• Why Do Smart Glasses Qualify as Medical Devices?
• What Is a Letter of Medical Necessity and How Do You Get One?
• HSA vs. FSA: Which Should You Use for Smart Glasses?
• How Much Can You Save Using HSA or FSA Funds?
• How Do Smart Glasses Compare to Other HSA-Eligible Hearing Devices?
• Step-by-Step: How to Buy Smart Glasses With HSA or FSA
• What About Prescription Lenses for Smart Glasses?
• FSA Deadlines: Don't Lose Your Funds
• Frequently Asked Questions

---

What Does the IRS Say About HSA and FSA Eligible Expenses?

IRS Publication 502 defines medical expenses as "costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body" (IRS Publication 502, 2025). Three categories within Publication 502 directly apply to smart captioning glasses: hearing aids and related equipment, eyeglasses needed for medical reasons, and special communication equipment for people who are deaf or hard of hearing.

The IRS explicitly lists hearing aids (including batteries, repairs, and maintenance) as qualified medical expenses. It also covers "special telephone equipment that lets a person who is deaf, hard of hearing, or has a speech disability communicate" — a category that extends to modern assistive communication devices beyond traditional phones.

Eyeglasses prescribed for medical reasons are separately eligible. Smart glasses that combine prescription lenses with assistive captioning technology qualify under multiple categories simultaneously, which strengthens the eligibility argument.

What doesn't qualify? Devices purchased purely for convenience, entertainment, or general wellness without a diagnosed medical condition. The key requirement is a connection between the device and a diagnosed health condition — which is where the Letter of Medical Necessity comes in.

---

Why Do Smart Glasses Qualify as Medical Devices?

Smart captioning glasses like AirCaps meet HSA/FSA eligibility because they function as assistive devices for diagnosed hearing loss — a condition affecting 37.5 million American adults (NIDCD, 2025). The IRS doesn't maintain a list of approved product names. Instead, it defines eligible categories, and smart captioning glasses fit squarely within them.

Consider what AirCaps captioning glasses actually do: they use 4-microphone beamforming to capture speech, process it through AI with 97% accuracy and 300ms latency, and display real-time captions on binocular MicroLED lenses. The device mitigates hearing loss by converting audio information into visual text — the definition of "affecting a function of the body" under IRS rules.

Here's a distinction most guides miss: smart captioning glasses don't need to be classified as "hearing aids" to qualify. They fall into the broader category of assistive communication devices. The IRS explicitly covers special equipment that helps people who are deaf or hard of hearing communicate. A device that displays real-time captions of speech is precisely that kind of equipment — regardless of whether it amplifies sound.

Healthy Hearing confirms that captioned phones and hearing assistive devices are HSA/FSA eligible (Healthy Hearing, 2025). Captioning glasses are the wearable evolution of captioned phones — same function, better form factor.

At $599, AirCaps costs less than one-quarter of the average traditional clinic hearing aid price of $4,727 per pair (HearingTracker, 2026). Using pre-tax HSA/FSA funds reduces the effective cost even further.

---

What Is a Letter of Medical Necessity and How Do You Get One?

A Letter of Medical Necessity is a signed document from a licensed healthcare provider explaining why a specific product is medically required for your condition (FSA Store, 2025). Not every HSA/FSA purchase requires one, but having an LMN virtually guarantees reimbursement approval for devices that don't fall into the most obvious categories.

For smart captioning glasses, an LMN connects the device to your diagnosed hearing loss. Here's what the letter should include:

• Your diagnosis with the ICD-10 code (common codes: H90 for conductive/sensorineural hearing loss, H91 for other hearing loss)
• A statement explaining why captioning glasses are medically necessary for your condition
• The specific product name and how it addresses your hearing loss
• Duration of prescribed use (typically "ongoing" or "indefinite")
• How the device improves your functional ability to communicate
• The provider's credentials, signature, and official letterhead

Who can write an LMN? Audiologists, ENT doctors, primary care physicians, and other licensed healthcare providers familiar with your hearing history. Most audiologists are experienced with these letters since they write them regularly for hearing aid purchases.

Many AirCaps customers report that their audiologists are enthusiastic about writing LMNs for captioning glasses. One customer's otolaryngologist said, "Now we can stop talking about a cochlear implant" — indicating that the medical community increasingly recognizes captioning glasses as a legitimate treatment option.

Isn't it worth a 15-minute conversation with your doctor to potentially save hundreds in taxes? Most providers will write the letter during a regular appointment at no additional charge.

---

HSA vs. FSA: Which Should You Use for Smart Glasses?

HSAs and FSAs both let you pay for medical expenses with pre-tax dollars, but they work differently. With 59.3 million Americans covered by HSAs and an estimated 22-23 million holding FSAs (EBRI, 2024), understanding the differences matters — especially for a purchase like smart glasses.

Feature	HSA (Health Savings Account)	FSA (Flexible Spending Account)
Eligibility	Must have a High Deductible Health Plan (HDHP)	Available through most employers
2026 Contribution Limit	$4,400 (individual) / $8,750 (family)	$3,400
Catch-up (age 55+)	Additional $1,000	Not available
Rollover	Funds roll over indefinitely — no expiration	Use-it-or-lose-it (max $680 carryover in 2026)
Portability	Stays with you if you change jobs	Tied to your employer
Average Balance	$3,769 (Devenir, 2024)	$1,291 average contribution (EBRI, 2022)
Best for Smart Glasses?	Yes — no deadline pressure, funds don't expire	Yes — especially before year-end deadline

If you have both accounts, here's the practical advice: use your FSA first. FSA funds expire (or mostly expire, with only $680 in permitted carryover for 2026). HSA funds roll over indefinitely and can even be invested for growth. Spending FSA money on smart glasses before it expires is better than forfeiting it to your employer.

The average HSA balance of $3,769 covers the full cost of AirCaps ($599) more than six times over. Even the average FSA contribution of $1,291 covers AirCaps with $692 left for other medical expenses.

---

How Much Can You Save Using HSA or FSA Funds?

The tax savings from HSA/FSA purchases depend on your marginal tax rate. Since HSA and FSA contributions are made pre-tax, you effectively save your tax rate on every dollar spent. For someone in the 24% federal tax bracket (plus state taxes), buying $599 smart glasses with HSA/FSA funds saves roughly $150-$200 compared to paying with after-tax income.

Those numbers reflect federal taxes alone. If you live in a state with income tax (California, New York, etc.), your total savings are even higher. A Californian in the 24% federal bracket with a 9.3% state rate saves roughly $199 on a $599 purchase — effectively getting AirCaps for $400.

HSA funds offer a triple tax advantage that FSAs don't: contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free. If you're using HSA money for smart glasses, you're spending dollars that were never taxed at any point.

---

How Do Smart Glasses Compare to Other HSA-Eligible Hearing Devices?

Smart captioning glasses occupy a unique position among hearing assistive devices. At $599, AirCaps costs a fraction of traditional hearing solutions — and all of these categories are HSA/FSA eligible. Among the 28.8 million U.S. adults who could benefit from hearing aids (NIDCD, 2025), fewer than 30% of adults over 70 have ever used one. Cost is a major barrier.

Here's what makes captioning glasses different from hearing aids: they don't amplify sound. They convert speech to text displayed on transparent lenses. This means they work in noisy environments where hearing aids struggle — like restaurants, where background noise averages 78 dBA (NIDCD, 2025). AirCaps' 4-mic beamforming isolates the speaker you're facing, delivering 97% accuracy even in noise.

Many people use captioning glasses alongside hearing aids, not as a replacement. The two technologies complement each other: hearing aids help with general environmental awareness, while captioning glasses ensure you catch every word in difficult situations. Both are HSA/FSA eligible, and you can use your funds for both.

Can you imagine paying less for a device that shows you every word being said than you'd spend on a single hearing aid that still fails in noisy restaurants?

---

Step-by-Step: How to Buy Smart Glasses With HSA or FSA

Purchasing smart glasses with your HSA or FSA is straightforward once you have the documentation in order. Here's the process from start to finish.

Step 1: Confirm Your Account Type and Balance

Log into your HSA or FSA portal (through your employer's benefits platform, your bank, or your HSA administrator like Fidelity, HealthEquity, or WEX). Check your current balance and confirm that medical devices are covered under your plan. Most HSA and FSA plans cover all IRS Publication 502 eligible expenses, but some employer-specific FSAs have restrictions.

Step 2: Get a Letter of Medical Necessity

Schedule an appointment with your audiologist, ENT doctor, or primary care physician. Ask them to write an LMN that includes your hearing loss diagnosis, ICD-10 code, and a statement that captioning glasses are medically necessary for your communication needs. Keep the original and make copies — your plan administrator may request it.

Step 3: Purchase Using Your HSA/FSA Card

Many HSA and FSA accounts come with a debit card linked directly to your funds. AirCaps accepts HSA/FSA debit cards at checkout — just use the card like any other payment method. The $599 purchase processes against your pre-tax health funds automatically. AirCaps also supports Affirm and Klarna if you want to split payments while using HSA/FSA funds for part of the purchase.

Step 4: Save Your Documentation

Keep your receipt, the Letter of Medical Necessity, and any order confirmation emails. Your plan administrator may request documentation during an audit. For HSAs, the IRS can request proof that withdrawals were used for qualified medical expenses — so hold onto records indefinitely.

Step 5: Submit for Reimbursement (If Needed)

If you paid out of pocket instead of using an HSA/FSA debit card, submit a reimbursement claim through your administrator's portal. Upload your receipt and LMN. Most reimbursements process within 5-10 business days.

That's it. Five steps, and you've purchased smart glasses using pre-tax dollars that might otherwise be forfeited.

---

What About Prescription Lenses for Smart Glasses?

Prescription eyeglasses are explicitly listed as HSA/FSA eligible under IRS Publication 502 (IRS, 2025). AirCaps supports prescriptions from -16 to +16 diopters through interchangeable lens holders that any optician can fit. The prescription lens holder add-on costs $39 — also HSA/FSA eligible.

This creates a practical advantage: you can use HSA/FSA funds for both the smart glasses ($599) and the prescription lenses, combining your assistive device and vision correction into a single pre-tax purchase. Traditional hearing aids offer no vision correction — they're a separate expense on top of whatever you're already paying for eyeglasses.

At 49 grams, AirCaps weighs less than most regular prescription eyeglasses. The black acetate frames, designed in collaboration with Bolon Eyewear, look like ordinary glasses. The binocular MicroLED display has less than 2% light leakage, so captions are invisible to others. For people who already wear glasses, switching to AirCaps means replacing one pair of glasses with another that also captions conversations — not adding a second device.

---

FSA Deadlines: Don't Lose Your Funds

FSA funds operate on a use-it-or-lose-it basis. In 2022, over $5 billion in FSA funds were forfeited back to employers — 52% of all FSA holders lost money (EBRI, 2024). The maximum carryover for 2026 is just $680, meaning any balance above that amount disappears if unspent.

Key dates to track for FSA spending:

• Your plan's annual deadline (typically December 31 or March 15 of the following year with a grace period)
• Whether your employer offers a grace period (usually 2.5 months after the plan year ends)
• Whether your plan allows the $680 carryover — not all plans do, and grace periods and carryovers are mutually exclusive

Smart glasses are an ideal end-of-year FSA purchase. Unlike bandages or contact lens solution, they're a single purchase that uses a meaningful portion of your balance. At $599, AirCaps uses nearly half of the $1,291 average FSA contribution (EBRI, 2024) — far better than scrambling to buy unnecessary items in December.

Have you checked your FSA balance lately? If you have more than $680 remaining and your plan year is ending soon, that excess will vanish unless you spend it.

---

What Other Smart Glasses Features Are HSA/FSA Eligible?

Beyond captioning, AirCaps offers features that further support the medical expense classification. Real-time translation in 60+ languages with automatic language detection helps people with hearing loss communicate across language barriers — particularly relevant for multilingual families where a hearing-impaired member may struggle even more when the conversation isn't in their primary language.

The AI meeting intelligence features — automatic transcription, speaker identification for up to 15 people, and structured summaries with action items — function as workplace accommodations for hearing loss. These are analogous to CART (Communication Access Realtime Translation) services, which are established HSA/FSA-eligible accommodations.

AirCaps accessories also qualify when purchased alongside the device for medical use:

• Charging Case ($99, or $79 with device) — extends daily usability of the assistive device
• Power Capsules ($79, or $63 with device) — magnetic hot-swap batteries for up to 18 hours of continuous captioning
• Prescription Lens Holder ($39, or $31 with device) — enables use as primary prescription eyewear

When you add accessories, the total cost of a fully equipped AirCaps system ($599 + $79 + $63 + $31 = $772) is still less than one-third the average traditional clinic hearing aid price. All purchased with pre-tax funds.

---

Frequently Asked Questions

Are all smart glasses HSA/FSA eligible?

No. Only smart glasses that serve a medical purpose qualify. Consumer smart glasses designed for entertainment, photography, or social media (like Ray-Ban Meta) aren't eligible unless prescribed for a specific medical condition. Captioning glasses designed for hearing loss, like AirCaps, qualify because they function as assistive communication devices under IRS Publication 502 categories.

Do I need a prescription to use HSA/FSA funds for smart glasses?

A formal eyeglass prescription isn't required — but a Letter of Medical Necessity from a healthcare provider is strongly recommended. The LMN documents that the device addresses a diagnosed condition (hearing loss), which is the standard most HSA/FSA plan administrators require for assistive technology. Some administrators may approve the purchase based on a hearing loss diagnosis alone.

Can I use HSA funds for smart glasses if I already have hearing aids?

Yes. The IRS doesn't limit you to one assistive device per condition. Many of AirCaps' 5,000+ customers use captioning glasses alongside hearing aids — hearing aids for general sound awareness, captioning glasses for noisy environments like restaurants where hearing aids struggle. Both purchases are independently HSA/FSA eligible, and 90% of AirCaps users wear them daily for work, school, family, or travel.

What happens if my HSA/FSA claim is denied?

If your plan administrator denies a claim, submit a Letter of Medical Necessity and request reconsideration. Most denials result from missing documentation, not ineligibility. If the denial persists, ask your administrator to cite the specific IRS exclusion — most cannot, because assistive communication devices are clearly covered under Publication 502.

Can I buy AirCaps accessories with HSA/FSA funds?

Accessories purchased as part of your assistive device setup generally qualify. IRS Publication 502 covers hearing aid batteries, repairs, and maintenance — a category that logically extends to charging cases and backup batteries for a captioning device. Include accessories on the same Letter of Medical Necessity as the glasses for the cleanest documentation.

---

Start Using Your HSA or FSA for Smart Glasses

If you have hearing loss and an HSA or FSA with unused funds, smart captioning glasses are one of the most impactful purchases you can make with pre-tax health dollars. AirCaps costs $599, weighs 49 grams, delivers 97% caption accuracy with 300ms latency through 4-mic beamforming, and works as prescription eyeglasses — all in a frame that looks like ordinary glasses.

The steps are simple: check your balance, get a Letter of Medical Necessity, and purchase using your HSA/FSA card. The entire process takes less time than a typical audiologist appointment.

With 47% of FSA holders forfeiting money every year and HSA balances averaging $3,769, the funds are there. The IRS eligibility is there. The technology is there. Don't let pre-tax health dollars go to waste when they could go toward never missing another word in conversation.

Explore AirCaps captioning glasses or visit the AirCaps shop to purchase with your HSA/FSA card.