You may reduce your taxable income by the amount you contribute to your HCFSA account for eligible health care expenses. These expenses must meet the following requirements:
Eligible Health Care Expense: An expense that has been incurred by the participant or eligible health care recipient (see below) during the Plan Year and that is eligible for reimbursement under the terms of HCFSA.
You may also submit claims for any over-the-counter (OTC) drugs that diagnose, cure, treat, prevent, or mitigate ailments. However, cosmetic items, sundries and toiletries are not eligible. For example, aspirin, and cold medicine are eligible, but toothpaste, shampoo, and vitamins/supplements are not eligible. You must submit a claims form and an itemized receipt for any and all OTC drugs.
Qualifying Health Care Expense: An expense incurred for an eligible medical service that is:
- For you or an eligible health care recipient (see
below);
- Permitted under the Internal Revenue Code;
- Medically necessary;
- Not reimbursable by your health insurance and/or
Welfare Fund; and
- Not for the payment of health insurance premiums.
Eligible Health Care Recipient: A person must be eligible to be covered by the participant's employer's medical plan and eligible to be included as a dependent on one's federal tax return and must be either:
- The participant;
- The participant's spouse; or
- The participant's eligible dependent.
Your enrollment covers
you and all of your eligible health care recipients, if any, for the entire Plan
Year and Grace Period or any remaining portion of the Plan Year. All of your
eligible dependents must be listed on your Enrollment/Change Form in order to
receive reimbursement under HCFSA.
IRS Publication 502, Medical and Dental Expenses (PDF)
(Please note that
Publication 502 is only used for reference.)
See the Flexible Spending FAQ
Calculate your potential savings with the HCFSA calculator
Flexible Spending Accounts Program
