Can I Use My FSA Account for My Child?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows you to set aside pre-tax money for out-of-pocket expenses. Many parents wonder if these funds can be used for their children’s costs. The answer is yes, but the child and the expense must meet specific Internal Revenue Service (IRS) rules. There are two types of accounts: a Health FSA for medical costs and a Dependent Care FSA for childcare expenses, each with its own criteria.

Defining a Qualifying Child for FSA Purposes

For an expense to be eligible, the child must meet the IRS definition of a “qualifying child,” which is based on three tests. The relationship test requires the child to be your son, daughter, stepchild, foster child, sibling, or a descendant of these individuals, such as a grandchild or nephew.

The age test differs by FSA type. For a Health FSA, you can use funds for a child up to age 26, regardless of whether they are a student, married, or a tax dependent. For a Dependent Care FSA, the child must be under age 13. An exception to these age limits exists for any child who is physically or mentally incapable of self-care, as they can be a qualifying individual regardless of age.

The residency test requires the child to have lived with you for more than half the year. Temporary absences for school, vacation, or medical care do not disqualify them. A child’s medical expenses can be covered by a Health FSA even if you do not claim them as a dependent, but for a Dependent Care FSA, you must be able to claim the child as a dependent.

Covered Expenses Under a Health FSA

A Health FSA can be used for a wide range of your qualifying child’s medical, dental, and vision expenses. For 2025, employees can contribute up to $3,300. An expense must be for the diagnosis, cure, treatment, or prevention of a disease, not for general health or cosmetic purposes.

Eligible expenses for your child include:

• Co-payments for doctor visits, prescription medications, and hospital bills.
• Dental care, including cleanings, fillings, and orthodontia.
• Vision expenses, such as eye exams, prescription eyeglasses, and contact lenses.
• Over-the-counter (OTC) medications and menstrual care products, which do not require a prescription.
• Medical supplies like bandages, crutches, and diagnostic devices.

Covered Expenses Under a Dependent Care FSA

A Dependent Care FSA (DCFSA) helps pay for childcare so you can work. For 2025, you can contribute up to $5,000 per household ($2,500 if married filing separately). An expense is eligible only if it is for a qualifying child under 13 and allows you (and your spouse) to work or look for work. If one spouse doesn’t work, they must be a full-time student or incapable of self-care.

Eligible expenses include:

• Payments to daycare centers and preschool programs.
• Costs for in-home caregivers or babysitters.
• Fees for before- and after-school care programs.
• Summer day camp tuition.
• Application fees and deposits for a qualifying care provider.

Care can be provided inside or outside your home, but it cannot be provided by your spouse, the child’s parent, or your child if they are under 19. You can pay other relatives, like a grandparent, if you do not claim them as a dependent. Expenses for education, such as tuition for kindergarten and higher grades, are not covered. Overnight camps, tutoring, and enrichment lessons also do not qualify, as the primary purpose must be care.

How to Use Your FSA for Child Expenses

There are two primary ways to use your FSA funds for child expenses. The first method is an FSA debit card, which you can use at the point of sale to pay for a qualifying service, such as a co-pay at a doctor’s office or a prescription. Always keep itemized receipts when using the debit card, as your FSA administrator may require them to verify the purchase.

The second method is to pay out-of-pocket and then submit a claim for reimbursement. For this, you must provide documentation, such as an itemized receipt or an Explanation of Benefits (EOB) from your insurer. This paperwork must clearly show the provider’s name, the date of service, a description of the service, and the amount you paid.

For Dependent Care FSA claims, you must also provide your care provider’s name, address, and Taxpayer Identification Number (TIN) or Social Security Number (SSN). This is required for when you file your annual tax return. You can submit claims as they occur, but reimbursement is limited to the available balance in your account.