Common FSA mistakes include losing funds due to the "use-it-or-lose-it" rule, failing to submit receipts, and overestimating annual contributions. To maximize benefits, verify eligible expenses (like OTC drugs, copays, or menstrual products), track deadlines for using funds, and understand whether your plan allows for a carryover or a grace period.
The main disadvantages of a Flexible Spending Account (FSA) are the "use-it-or-lose-it" rule, meaning you forfeit unused funds annually, its lack of portability (you lose funds if you leave your job), inflexibility in changing contributions mid-year, and the need to estimate expenses accurately to avoid forfeitures. You also lose the ability to claim certain tax credits, like the dependent care credit, and must manage paperwork for reimbursements.
Toothpaste is not eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA). What is toothpaste?
If you're due for a checkup, get in before the end of your plan year and use your FSA funds to cover eligible costs. FSA funds cover acupuncture appointments and many types of chiropractic care. With chiropractic visits, only adjustments are considered a qualifying expense.
Yes, walking pads (treadmills) can be FSA eligible, but they usually require a Letter of Medical Necessity (LMN) from a doctor to prove they treat a specific medical condition, not just for general fitness, though some retailers/platforms (like Truemed) streamline this with a health assessment. You can use your FSA/HSA funds for them if a provider confirms it's to mitigate a diagnosed condition like obesity, diabetes, or high blood pressure, often through designated partners or specific product searches on sites like Amazon or Target.
Vitamins are generally not FSA eligible for general health, but they become eligible if used to treat a specific medical condition, requiring a doctor's Letter of Medical Necessity (LMN). Exceptions like prenatal vitamins (for fetal development) and glucosamine/chondroitin (for joint issues like arthritis) often qualify without an LMN, but always check with your FSA plan provider for specific rules.
No, standard toothbrushes are generally not FSA eligible because the IRS considers them for general health and hygiene, not specific medical treatment, but you might get approval for a specialty/electric toothbrush with a Letter of Medical Necessity (LMN) from your dentist for a diagnosed condition like gum disease or severe plaque. A dentist's recommendation for a specific medical reason (like periodontal issues) can turn an otherwise ineligible item into a qualified expense, so always check with your plan administrator first.
While FSAs must adhere to the “use-or-lose” rule, employers may offer one of two options to help you avoid having to forfeit your unused funds: A grace period of up to 2.5 months (ex. January 1 to March 15) to spend the remaining funds. Carrying over a maximum of $660 of unused funds at the end of the year (as of 2025)
No, you generally do not have to report Health Care FSA contributions on your tax return because they're pre-tax and already reduce your taxable income, but you must report Dependent Care FSA usage by filing IRS Form 2441. Your W-2 shows your FSA contributions (often in Box 14), but you don't enter them separately; the payroll deduction handles the tax benefit automatically, preventing "double-dipping" for medical expenses, according to Jackson Hewitt and FreeTaxUSA.
Does Your FSA Card Impact Your Credit? "While FSA cards look and behave like credit or debit cards where they're accepted," says credit scoring expert Barry Paperno, "like debit cards, they don't appear on your credit report or get included in your credit scores.
Yes, sunglasses are FSA-eligible if they have prescription lenses or are over-the-counter reading glasses, as these count as medically necessary vision correction; however, standard, non-prescription sunglasses for fashion or general sun protection are generally not FSA-eligible unless prescribed by a doctor for a specific medical condition. Always check with your specific FSA plan administrator to be sure.
Protein shakes are considered food items, and unfortunately you typically cannot use your flexible spending account (FSA) towards these.
Yes, Metamucil is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA). Metamucil® Fiber Gummies, No Sugar Added, 72 ct.
You can use FSA funds for a mattress if it's medically necessary to treat or prevent a diagnosed condition, requiring a doctor-issued Letter of Medical Necessity (LMN), with many brands like Purple, Nectar, Helix, and Avocado partnering with services like Truemed to facilitate this process, allowing you to buy eligible mattresses, adjustable bases, and pillows with pre-tax money by completing an online health assessment at checkout.
Compression socks qualify as HSA and FSA eligible medical expenses when they are used to manage conditions such as swelling, circulation issues, venous disorders, or injury recovery.
Running shoes and foot health products can qualify for HSA and FSA spending when they treat or manage a medical condition.
Yes, Peloton equipment (Bike, Bike+, Tread, Row) is generally FSA/HSA eligible, but requires a Letter of Medical Necessity (LMN) from a licensed provider, often obtained through a partnership with Truemed at checkout, where you complete a health survey to see if you qualify for pre-tax purchase of hardware for managing conditions like obesity or heart disease.