Transportation costs of disabled individual commuting to and from work: FSA Eligibility

A disabled individual's commuting costs to and from work are personal expenses and not expenses for medical care. However, the costs incurred for transportation to and from work may be medical expenses if the employment itself is explicitly prescribed as therapy to treat a medical condition. Therefore, transportation costs of disabled individual commuting to and from work reimbursement is not eligible with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What are Transportation Costs of Disabled Individual Commuting to and from Work?

Individuals who are disabled will inherently have more difficulties navigating to and from their place of work, and because this burden is likely the result of a medical condition or a major injury, it stands to reason that some disabled individuals may believe that their consumer-directed healthcare account should cover their transportation expenses. However, the IRS considers these expenses as "personal", and not eligible for reimbursement through these accounts.

In some cases, employment may be a form of therapy prescribed by a doctor to treat a medical condition, in which case these transportation expenses would be eligible for reimbursement through a consumer-directed healthcare account. Reimbursable expenses include car/rental car, bus, taxi, train, plane & ferry fares. Ambulatory services are also included. Parking and toll fees are also included. This extends not just to the person receiving medical care but to other individuals: Parent required to travel with a child, nurse/caregiver required for treatment, and another person, if visits are required for treatment of mentally ill dependent. Mileage rates are adjusted for inflation each year.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB01 11/21/2017 5:42:40 PM