What Expenses Qualify for Reimbursement?

	Healthcare expenses that qualify
	Healthcare expenses that do not qualify
	Over-the-counter items that qualify
	Over-the-counter items that do not qualify
	Dependent care expenses that qualify
	Dependent care expenses that do not qualify
	Adoption expenses that qualify
	Adoption expenses that do not qualify

Click here for a printer-friendly list of healthcare expenses and OTC items that qualify/do not qualify for reimbursement.

Plan restrictions may apply. Check with your plan administrator.

The following healthcare expenses qualify for reimbursement under a FSA Plan.

Only healthcare expenses not reimbursed by insurance can be claimed. Printer-friendly (pdf).

	Acupuncture (excluding remedies and treatments prescribed by acupuncturist)
	Alcoholism treatment
	Ambulance
	Artificial limbs/teeth
	Chiropractors
	Christian Science practitioner's fees
	Contact lenses and solutions
	Co-payments (doctor, dental, vision, pharmacy)
	Costs for physical or mental illness confinement
	Crutches
	Deductibles
	Dental fees (cosmetic procedures not eligible)
	Dentures
	Diagnostic fees
	Dietary supplements and vitamins with doctor's letter of medical necessity
	Drug and medical supplies (i.e. syringes, needles, etc.)
	Endodontist fees
	Eyeglasses prescribed by your doctor
	Eye examination fees
	Eye surgery (cataracts, LASIK, etc.)
	Hearing devices and batteries
	Home health care
	Hospital bills
	Insulin
	Laboratory fees
	Laser eye surgery
	Office visits
	Obstetrics and fertility
	Oral surgery
	Orthodontic fees
	Orthopedic devices
	Osteopath fees
	Over-the-counter drugs that are medically necessary like allergy medications, aspirin, or antacids.
	Oxygen
	Periodontist fees
	Physician fees (cosmetic procedures not eligible)
	Prescribed medicines
	Psychiatric care
	Psychologist's and psychiatrist fees
	Routine physicals and other non-diagnostic services or treatments
	Smoking-cessation over-the-counter drugs
	Smoking-cessation programs
	Surgical fees
	Weight-loss over-the-counter drugs with doctor's letter of medical necessity
	Weight-loss programs with a doctor's letter of medical necessity
	Wheelchair
	Vitamins, with doctor's letter of medical necessity
	X-rays

Healthcare reimbursement limitation

The amount of Healthcare reimbursement may not exceed the maximum allowed under the plan. Please review your Summary Plan Description or see your Plan Administrator for more information.

The following healthcare expenses do not qualify for reimbursement under a FSA Plan. Printer-friendly (pdf)

	Cosmetic surgery, procedures, and/or medications
	Dental bleaching
	Hair restoration (procedures, drugs, or medications)
	Health club or gym memberships for general health
	Marriage and family counseling
	Over-the-counter items, drugs, or medications that are not medically necessary or are not prescribed by your physician.
	Weight loss programs for general health or appearance
	Mail order prescriptions from another country
	Premiums you or your spouse pay for insurance coverage (Payroll-deducted premiums sponsored by your employer are eligible under the Premium Only Plan)

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The following over the counter items qualify for reimbursement under a FSA Plan. Printer-friendly (pdf)

	Antiseptics Antiseptic wash or ointment for cuts or scrapes Antiseptic mouthwash Benzocaine swabs Boric acid powder First aid wipes Hydrogen peroxide Iodine tincture Rubbing alcohol Sublimed sulfur powder
	Asthma Medications Bronchodilator/Expectorant tablets Bronchial asthma inhalers
	Cold, Flu, and Allergy Medications Allergy medications Cold relief (liquid, tablets, or drops) Cough drops (liquid, tablets, or drops) Flu relief (liquid, tablets, or drops) Homeopathic sinus medications Medicated chest rub Nasal decongestant (drops, inhaler, spray, or strips) Sinus & allergy nasal spray Sinus medications Vapor patch cough suppressant
	Diabetes Diabetic lancets Diabetic needles Diabetic supplies Diabetic syringes Diabetic test strips Glucose meters Glucose tablets
	Ear/Eye Care Airplane ear protection Ear drops for swimmers Ear water-drying aid Ear wax removal drops Homeopathic earache tablets Contact lens solutions
	Health Aids Anti fungal treatments Denture adhesives Diuretics and water pills Hemorrhoid relief Incontinence supplies Lice control Medicated bandages Motion sickness tablets Respiratory stimulant ammonia Sleeping aids
	Pain Relief Arthritis pain reliever Bunion and blister treatments Itch relief Orajel� Pain relievers, aspirin and non-aspirin Throat pain medications
	Personal Test Kits Cholesterol tests Colorectal cancer screening tests Home drug tests Ovulation indicators Pregnancy tests
	Skin Care Acne medications Anti-itch lotion Bunion and blister treatments Cold sore and fever blister medications Corn and callus removal medications Diaper rash ointment Eczema cream Medicated bath products Wart removal medications
	Stomach Care Acid reducers Antacid gum Antacid liquid Antacid tablets Anti-diarrhea medications Gas prevention (liquid, tablets, or drops) Ipecac syrup Laxatives Pinworm treatment Prilosec� Upset stomach mediations
	Dual Use - requires doctor letter of medical necessity Adhesive or elastic bandages Blood pressure meter Cold or hot compresses Eye drops Foot spa Gauze and tape Gloves and masks Herbs Leg or arm braces Massagers Minerals Multivitamins Saline nose drops Special supplements Special teeth cleaning system Thermometers Vitamins

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The following over the counter items do not qualify for reimbursement under a FSA Plan. Printer-friendly (pdf)

	Aromatherapy
	Baby bottles and cups
	Baby oil
	Baby wipes
	Blistex� / Chapstick�
	Breast enhancement system
	Cosmetics
	Cotton swabs
	Dental floss
	Deodorants
	Facial care
	Feminine care fragrances or facial care products
	Feminine hygiene products
	Hair regrowth
	Insoles for shoes
	Low "carb" foods
	Low calorie foods
	Mouthwash
	Oral care
	Petroleum jelly
	Shampoo and conditioner
	Skin care
	Spa salts
	Sun clips
	Sun tanning products
	Tooth brushes

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The following dependent care expenses qualify for reimbursement under a FSA Plan.

Dependent care expenses are those that are necessary for you and your spouse (if married) to be gainfully employed.

Nanny expenses, for services provided inside your home, are eligible to the extent they are attributable to dependent care expenses and expenses of incidental household services.

Dependent care expenses incurred for services outside your home, providing they are incurred for the care of a qualifying dependent that regularly spends at least 8 hours per day in your home.

Registration fees to a daycare facility are eligible as long as the fees are allocable to actual care and not described as materials or other fees.

Nursery school expenses are eligible, even if the school also furnishes lunch and educational services.

Food and incidental expenses (diapers, activities, etc.) may be eligible if part of dependent care charge.

Expenses paid to a relative (e.g. child, parent, or grandparent of participant) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.

FICA and FUTA payroll taxes of the daycare provider are eligible.

Dependent care expenses incurred to enable the employee to find work are eligible.

The reimbursement may not exceed the smaller of the following limits:

The maximum allowed under the plan.

$5,000 (if you are filing a joint tax return) and $2,500 if separate returns are filed.

Your taxable compensation (after all compensation reduction elections).

If you are married, your spouse's actual or deemed earned income.

Dependent Care reimbursement limitations

Dependent Care reimbursement may not exceed the smaller of the following limits:

	The maximum allowed under the plan.
	$5,000 (if you are married and filing a joint tax return or are filing as single, head of household) and $2,500 if you are married and separate returns are filed.
	Your taxable compensation (after all compensation reduction elections).
	If you are married, your spouse's actual or deemed earned income.

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The following dependent care expenses do not qualify for reimbursement under a FSA Plan.

	Kindergarten fees are almost always an education expense and should never be reimbursed under a dependent care plan.
	Elementary school expenses for a child in first grade or higher are not eligible.
	Food, transportation, and incidental expenses (diapers, activities, etc.) are not eligible if charged separately from dependent care expenses.
	Expenses paid to a housekeeper, maid, cook, etc. are not eligible, except where incidental to child or dependent adult care.
	Mass transit and parking.

(For additional information click here to view IRS Publication 503.)

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The following adoption expenses qualify for reimbursement under an FSA Plan.

	Credit available for expenses up to $11,650 for each eligible child ($12,150 in 2009).
	Credit available for expenses associated with a legal foreign adoption is limited to $11,650 for each eligible child even if the child is "child with special needs." (This limit increases to $12,150 in 2009.)
	Reasonable and necessary legal adoption fees.
	Court costs.
	Attorney fees.
	Other expenses which are directly related to, and the principal purpose of which is for the legal adoption of an eligible child.
Qualifying Child:
	Individual who has not attained the age of 18 as of the time of the adoption.
	Physically or mentally incapable of caring for himself.
A Child With Special Needs:
	Any child who cannot or should not be returned to the home of his or her parents and a specific factor or condition makes it reasonable to conclude that the child cannot be placed with adoptive parents unless assistance is provided as determined by a state.
	The child must be a citizen or resident of the United States.
Income Limitations:
	The credit is phased out ratably for participants with a household modified adjusted gross income over $174,730 ($182,180 in 2009) and no credit is allowed to participants with a household modified adjusted gross income of $214,730 or more ($222,180 or more in 2009).

The following adoption expenses do not qualify for reimbursement under an FSA Plan.

	Adoption of a child belonging to the participant's spouse.
	Illegal adoption fees.
	Surrogate parenting arrangements.
	Legal adoption expenses for which another deduction or credit is allowed.

(For additional information click here to view IRS Publication 968.)

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