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, you must obtain a prescription from your doctor for these OTC drugs (other than insulin). Cosmetic items, sundries and toiletries are not eligible. For example, aspirin, and cold medicine with a prescription are eligible, but toothpaste and shampoo are not eligible, even with a prescription.
Vitamins/supplements are not eligible, even if recommended by a physician. However, certain vitamins/supplements are eligible if prescribed by a physician. You must submit a claims form, along with a copy of the prescription, and an itemized receipt for any and all OTC drugs prescribed by a doctor.
Qualifying Health Care Expense: An expense incurred for an eligible medical service that is:
Eligible Health Care Recipient:
- 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.
- The participant;
- The participant's spouse; or
- The participant's eligible dependent, including an adult child, through the end of the Plan Year in which the child turns age 26.
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