What Expenses Qualify for Reimbursement?
Health care expenses that qualify
Health care 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 health care expenses and OTC items that qualify/do not qualify for reimbursement.
( Plan restrictions may apply. Check with your plan administrator.)

The following health care expenses qualify for reimbursement under an FSA Plan.

Only health care expenses not reimbursed by insurance can be claimed. Printer-friendly (PDF)
Items marked (Rx) require a doctor's prescription as of 1/1/2011

Acupuncture fees (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 (Rx)
Oxygen
Periodontist fees
Physician fees (cosmetic procedures not eligible)
Podiatrist fees
Prescribed medicines
Psychiatric care
Psychologist's and psychiatrist fees
Radiology
Routine physicals and other non-diagnostic services or treatments
Smoking-cessation over-the-counter drugs (Rx)
Smoking-cessation programs
Surgical fees
Weight-loss over-the-counter drugs (Rx)
Weight-loss programs with a doctor's letter of medical necessity
Wheelchair
Vitamins, with doctor's letter of medical necessity
X-rays and MRI

Health care reimbursement limitation

The amount of health care 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 health care 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 drugs, or medications that 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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Over-the-counter items, drugs or medications must be medically necessary. The items marked with an (Rx) require a doctor's prescription. Printer-friendly (pdf)

Antiseptics
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Antiseptic wash or ointment for cuts or scrapes (Rx)
  • Antiseptic mouthwash (Rx)
  • Benzocaine swabs (Rx)
  • Boric acid powder (Rx)
  • First aid wipes (Rx)
  • Hydrogen peroxide (Rx)
  • Iodine tincture (Rx)
  • Rubbing alcohol (Rx)
  • Sublimed sulfur powder (Rx)
Cold, Flu, Asthma and Allergy Medications
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Allergy medications (Rx)
  • Bronchodilator/Expectorant tablets (Rx)
  • Bronchial asthma inhalers (Rx)
  • Cold relief syrup, tablets and drops (Rx)
  • Cough relief syrup, tablets and drops (Rx)
  • Flu relief syrup, tablets and drops (Rx)
  • Homeopathic sinus medications (Rx)
  • Medicated chest rub (Rx)
  • Nasal decongestant spray, drops or inhaler (Rx)
  • Sinus and allergy nasal spray (Rx)
  • Vapor patch cough suppressant (Rx)
Diabetes
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Diabetic lancets
  • Diabetic needles
  • Diabetic supplies
  • Diabetic syringes
  • Diabetic test strips
  • Glucose meters
  • Glucose tablets (Rx)
Ear/Eye Care
Letter of Medical Necessity required from a physician (LOMN)
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Airplane ear protection (LOMN)
  • Ear drops for swimmers (Rx)
  • Ear water-drying aid (Rx)
  • Ear wax removal drops (Rx)
  • Homeopathic earache tablets (Rx)
  • Contact lens solutions
Health Aids
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Anti fungal treatments (Rx)
  • Denture adhesives
  • Diuretics and water pills (Rx)
  • Hemorrhoid relief (Rx)
  • Incontinence supplies
  • Lice control (Rx)
  • Medicated bandages
  • Motion sickness tablets (Rx)
  • Respiratory stimulant ammonia (Rx)
  • Sleeping aids (Rx)
Pain Relief Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Arthritis pain reliever (Rx)
  • Bunion and blister treatments (Rx)
  • Itch relief (Rx)
  • OrajelŪ (Rx)
  • Pain relievers, aspirin and non-aspirin (Rx)
  • Throat pain medications (Rx)
Personal Test Kits
  • Cholesterol tests
  • Colorectal cancer screening tests
  • Home drug tests
  • Ovulation indicators
  • Pregnancy tests
Skin Care
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Acne medications (Rx)
  • Anti-itch lotion (Rx)
  • Bunion and blister treatments (Rx)
  • Cold sore and fever blister medications (Rx)
  • Corn and callus removal medications (Rx)
  • Diaper rash ointment (Rx)
  • Eczema cream (Rx)
  • Medicated bath products (Rx)
Stomach Care
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Acid reducing gum, liquid and tablets (Rx)
  • Anti-diarrhea medications (Rx)
  • Gas prevention tablets and drops (Rx)
  • Ipecac syrup (Rx)
  • Laxatives (Rx)
  • Pinworm treatment (Rx)
  • Upset stomach mediations (Rx)
Dual use items
Letter of Medical Necessity required from a physician (LOMN)
Items marked (Rx) require a doctor's prescription as of 1/1/2011
  • Adhesive or elastic bandages
  • Blood pressure meter
  • Cold or hot compresses
  • Eye drops (Rx)
  • Foot spa (LOMN)
  • Gauze and tape (LOMN)
  • Gloves and masks (LOMN)
  • Herbs (Rx)
  • Leg or arm braces
  • Massagers (LOMN)
  • Minerals (Rx)
  • Multivitamins (Rx)
  • Saline nose drops (Rx)
  • Special supplements (Rx)
  • Special teeth cleaning system (LOMN)
  • Thermometers
  • Vitamins (Rx)

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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
Breast enhancement system
Cosmetics
Cotton swabs
Dental floss
Deodorants
Feminine care fragrances
Hair regrowth
Low "carb" foods
Low calorie foods
Oral care
Petroleum jelly
Shampoo and conditioner
Skin care
Spa salts
Sun tanning products
Tooth brushes
Over-the-counter items, drugs, or medications that are not medically necessary, or are not prescribed by your physician or health practitioner

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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 eight hours per day in your home.
Registration fees to a day care 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 day care 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.
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 $12,650 in 2012 for each eligible child.
Credit available for expenses associated with a legal foreign adoption in 2012 is limited to $12,650 for each eligible child even if the child is "child with special needs".
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 $189,710 in 2012 and no credit is allowed to participants with a household modified adjusted gross income of $229,710 or more.

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.

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