Flexible Spending Account (FSA) Eligible Expenses
Flexible spending account eligible expenses mirror the medical expense deductions you can take on IRS form 1040, Schedule A. FSA eligible expenses are primarily for the prevention or alleviation of a physical or mental defect or illness. Eligible flexible spending account items include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body.
Growing families will find many FSA eligible items. Qualifying flexible spending account expenses fall into several broad categories relating to growing families. Read below for:
- Types of FSA expenditures that qualify
- Who is covered
- FSA documentation needed
FSA Eligible Items for Growing Families
Prescription Drugs Prescription drug co-pays may generate a significant amount of on-going tax deductible medical expenses depending upon your insurance carrier's formulary, Co pay, and three tier co pay arrangement
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Infertility and IVF Cut your fertility treatment costs using your Healthcare FSA. Expenses for diagnostic procedures, fertility drugs, assisted reproductive procedures can be paid for using pre-tax dollars.
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Prenatal Care Cut prenatal care costs for extra OB/Gyn visits, chiropractic, sonograms, lamaze, maternity ward co pays, deductibles, and more
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Well Baby Care Cut well baby care costs for items such as pediatrician co pays, new deductibles, circumcision, vaccines, breast pump, and more
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Baby Delivery Costs Cut NICU Hospital bills from uncovered medical costs such as extra hospital deductible, extra hospital co pay, co-insurance, out-of-network charges, amounts over usual customary & reasonable, maximum out of pocket, and policy limits
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Special Needs Funding Make the most of the Federal Tax Code for your child with special needs. There are expanded categories of deductible costs such as developmental counseling, special education, adaptive customizations, assistive technologies, experimental treatments, and alternative therapies.
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Cord Blood Banking The costs of banking or storing your baby's umbilical cord blood may be tax deductible - cutting these fees by 1/3 or more. But these costs are not always deductible. And you may not gain any real tax savings unless you use a Flexible Spending Account (FSA). Read more to learn why.
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General Medical Expenses Flexible Spending Account (FSA) for general medical bills; health insurance deductible, co pay, usual customary and reasonable charges, out of pocket expenses, dental, vision, hearing, etc
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Eligible FSA Expenses - Who Qualifies
Eligible flexible spending account expenses include qualified medical items you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a multiple support agreement.
Eligible FSA Expenses - What Documentation is Needed?
Eligible FSA expenses are much easier to determine than in the past. With the advent of debit card technology much of the work is already done for you. When you use your FSA debit card at a qualifying pharmacy, or medical providers office the card will automatically tell you whether the expense is eligible. Also, many pharmacies will note flexible spending account eligible items right on the printed receipt.
Many items will fall into a gray area such as: transportation, meals, and other items. You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You may include in FSA eligible expenses the incidental cost of meals and lodging charged by a hospital or similar institution if your principal reason for being there is to receive medical care. Be sure to keep all documentation.
