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Medical

The Internal Revenue Service determines what expenses can be reimbursed with funds from a health care flexible spending account (FSA).

Examples of eligible expenses

  • Acupuncture
  • Alcohol and drug addiction treatment
  • Breast reconstruction surgery
  • Dental treatment
  • Diagnostic tests and devices
  • Doctor’s visits
  • Drugs and prescriptions
  • Eyeglasses, contact lenses and exams
  • Fertility enhancements
  • Hearing aids and batteries
  • Operations/surgery (non-cosmetic)
  • Nursing services
  • Physical therapy
  • Psychiatric care
  • Smoking cessation

> View IRS Publication 502 for a full list

Examples of ineligible expenses

  • Cosmetic surgery
  • Diaper service
  • Electrolysis or hair removal
  • Funeral expenses
  • Health club dues
  • Illegal operations and treatments
  • Maternity clothes
  • Nutritional supplements
  • Over-the-counter drugs and medicines not use for a medical purpose
  • Toiletries (e.g. toothbrush, toothpaste)
  • Teeth whitening
  • Weight loss programs (unless prescribed to treat a specific disease)

Tax savings
Consider this example of how a family can save money with a health care FSA.*

Matt, 37, and Jennifer, 36, are married with an 11-year-old daughter. Together, their gross annual income is $75,000, and they file their taxes jointly.

Their estimated health care expenses for the year are:

Deductibles $ 600
Eye exams $ 125
Eyeglasses/contacts $ 315
Prescriptions $ 480
Dental expenses $ 200
Orthodontia $1,500
Total $3,220

Matt and Jennifer would save approximately $730 a year if they contributed to an FSA to pay for eligible medical expenses.


With an FSA Without an FSA
Income $75,000 $75,000
Health care expenses ($3,220) N/A
Taxable income $52,180 $55,400
Estimated taxes ($7,097) ($7,580)
Estimated Social Security ($4,450) ($4,650)
Estimated Medicare ($1,041) ($1,088)
Health care expenses N/A ($3,220)
Net pay $59,192 $58,462


*This hypothetical example is presented strictly for educational purposes and doesn’t include other potential factors, such as pretax contributions to a qualified retirement plan, mortgage or other deductions. Please consult a tax, legal or financial advisor about your own personal situation.

Shop online

A special online store at drugstore.com identifies health care items eligible for reimbursement through HSAs and FSAs. Check your employer's guidelines for eligible expenses if you have an HRA.