The Daily Deduction

Health Care FSA Watch

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Just a reminder: Depending on your Health Care FSA Plan, all receipts for services rendered in 2013 are due by midnight tomorrow.  Some plans even allow you to use money from last year’s plan for medical services performed between 1/1/2014 – 3/15/2014.  It’s important to check with your Employer or Plan Administrator to see if this applies to your plan.

Qualifying expenses for Health Care FSAs fall under these categories:

  • Special Education.  If a doctor recommends tutoring by a specially trained teacher to work with a child who has learning disabilities caused by a mental or physical impairment, this is a medical expense.
  • Weight Loss. Fees you pay for a membership to a weight reduction group can be included if it is for a specific disease such as hypertension or obesity. This includes fees you pay to join the group and also the fees for periodic attendance at the group. You cannot include membership dues to a gym, a spa or a health club but if the gym charges separate fees for weight loss activities, you can include that.
  • Stop Smoking Programs.  You can include the amount you pay for the program to stop smoking.  You cannot include non-prescription drugs such as nicotine patches or nicotine gum.
  • Eyeglasses and Contact Lenses.  The amount you pay for the eye exam, and for eyeglasses or contact lenses that are for medical, not cosmetic, reasons can be included in your medical expenses.
  • Chiropractic.  You can include the fees you pay to a chiropractor for medical treatment.
  • Acupuncture.  You can include fees paid for acupuncture services in your medical expenses.
  • Dental Treatment.  Fees paid for the prevention and alleviation of dental diseases can be included in your medical expenses. This does not include teeth whitening.
  • Physical Exam.  You don't have to be sick to see the doctor. The amount paid for an annual physical exam can be included in medical expenses. 
  • Qualified Long-Term Care Insurance Contracts.  There are a number of qualifiers to be able to include this in your medical expenses.  Seek the advice of a  tax professional  such as eSmart Tax or Liberty Tax Service to get specific information.

Before using the money in your Flexible Spending Account, it is important to make sure that the item can be included as a medical expense.  Talking to your tax professional is the safest way to make sure you are using the money appropriately as allowed by the IRS.

Posted To: The Daily Deduction By: Lauryn on 3/14/2014 02:25:00 AM
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