Are Face Masks FSA Eligible? How to Claim Them

A Flexible Spending Account (FSA) allows individuals to pay for certain out-of-pocket healthcare costs with tax-free money. These employer-sponsored accounts use pre-tax funds for eligible medical expenses not covered by health insurance. Understanding what qualifies for reimbursement, particularly for items like face masks, can help maximize FSA benefits. This article clarifies the eligibility of face masks for FSA reimbursement and outlines the claiming process.

General FSA Eligibility Criteria

A Flexible Spending Account operates under specific Internal Revenue Service (IRS) guidelines regarding eligible expenses. An expense qualifies for FSA reimbursement if it is considered “medical care” under IRS guidelines. This broad definition includes costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. The primary purpose of the item or service must be for medical care, not for general health, cosmetic benefits, or convenience.

FSA funds can be used for a wide range of expenses, such as deductibles, copayments, and prescription medications. Certain medical equipment, supplies, and diagnostic devices also qualify. However, FSA funds cannot pay for health insurance premiums.

Face Masks as Qualified Medical Expenses

The Internal Revenue Service (IRS) issued specific guidance clarifying the eligibility of personal protective equipment (PPE), including face masks, for FSA reimbursement. In Announcement 2021-7, the IRS stated that amounts paid for PPE, such as face masks, hand sanitizer, and sanitizing wipes, are considered medical care under Section 213(d). This applies when the primary purpose of these items is to prevent the spread of COVID-19. This guidance was made effective retroactively to January 1, 2020.

This clarification allows individuals to use their FSA funds for various common types of face masks, including cloth, surgical, and N95 masks, provided they are used for personal protection against COVID-19. Before this announcement, many PPE items were classified as “dual-purpose” and required a letter of medical necessity. The IRS ruling eliminated this requirement for PPE used to prevent the spread of COVID-19, simplifying the reimbursement process for these items.

How to Claim Reimbursement

Claiming reimbursement for eligible face mask purchases from your Flexible Spending Account involves a straightforward process. Gather proper documentation, primarily an itemized receipt. This receipt should show the purchase date, a description of the item (e.g., “face masks”), and the cost. Due to the specific IRS guidance on PPE, a prescription or a Letter of Medical Necessity is not required for face mask reimbursement.

Once you have the necessary documentation, you can submit your claim to your FSA administrator. Administrators offer several methods for submission, including online portals, mobile applications, or mail. Complete a claim form and attach the itemized receipt. After submission, reimbursement is processed within a few business days, through direct deposit or a check.