In case you're new to Asked and Answered, we get a lot of questions about product and service eligibility. And understandably, there's a lot of confusion when it comes to certain products that seem like they should be eligible, but don't quite make the cut in the eyes of the IRS.
On the surface, the regulations behind your FSA seem pretty cut and dry. After all, these accounts are designed to cover "diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body."
But, this makes for a gray area, and some exclusions are more confusing than others. Let's revisit a few products that you would expect to be FSA-eligible, but unfortunately, haven't quite earned a spot on the list.
I think we can all agree that good dental care is a healthy "must." Because not taking care of your teeth can lead to a wide range of potential health problems (not to mention social concerns). So, it would make sense for dental supplies to be eligible, right? Well, not quite … at least not yet.
Unfortunately, items like toothbrushes and floss fall under the umbrella of "general health," and don't make the grade just yet. We hope to see some changes in this area, but for now, these products are still taxed. That doesn't mean you should stop using them, though. There are better ways to make a point…
When we first mentioned these controversial products, they were becoming a hot-button issue. Today, vaping is quickly becoming a massive industry. It's also massively unregulated and largely unproven.
While there have been a metric ton of studies both in the U.S. and abroad proving the safety and effectiveness of e-cigarettes as a viable smoking alternative, the FDA won't designate them as "smoking cessation" products until countless other standards and regs are put in place. And that means the IRS isn't likely to budge, either.
So, while nicotine gums and lozenges might not be as popular as vape pens, they're still the only FSA-eligible (when prescribed) smoking cessation products around. But stay tuned, because the growing vape industry is bound to push for FDA approval each year until it gains some traction in Washington.
This might be the most-common product we hear about each day. We all know insects carry disease. And that their bites can transmit disease. So wouldn't a product that deters insects from biting be considered a preventive measure against disease?
However sunscreen is eligible and thankfully, your FSA does allow you the best of both worlds, thanks to sun protection that features insect-repelling ingredients. It might not be as potent as that industrial-size can of DEET you carry when you go hiking, but if you can get viable bug and sun protection in one bottle, it's a win-win, with tax-free funds.
BullFrog Mosquito Coast Bug Spray
BullFrog Mosquito Coast Bug Spray is engineered with a DEET-free insect repellent that deters bites for up to 8 hours and protects from the sun.
Oral Care Products
Oral care products like denture cleaner, filling materials and wax for braces are all FSA-eligible to keep you smiling.
Don't waste time hunting for ways to spend your tax-free funds. In That's Eligible?!, we'll bring you these updates every Monday, so you don't have to. And for all things flex spending, be sure to check out the rest of our Learning Center, and follow us on Facebook, Instagram and Twitter.