Can You Buy Sunscreen With an FSA?

Flexible Spending Accounts (FSAs) offer a tax-advantaged way for individuals to pay for eligible healthcare expenses. These accounts allow you to set aside pre-tax money from your paycheck to cover qualified medical costs throughout the plan year.

Sunscreen Eligibility for FSA

Sunscreen is an eligible expense for Flexible Spending Accounts, provided it meets specific Internal Revenue Service (IRS) criteria. Products must have a Sun Protection Factor (SPF) of 15 or higher and offer broad-spectrum protection. Broad-spectrum means the product effectively guards against both UVA and UVB rays, which are types of ultraviolet radiation that can harm the skin.

The eligibility of sunscreen as an over-the-counter (OTC) medical expense without a prescription was solidified by changes stemming from the CARES Act. This legislation removed the previous requirement for a doctor’s prescription for many OTC medications and healthcare products, including those used for preventive care like sunscreen. This change recognizes sunscreen as a legitimate medical expense for preventing conditions such as sunburn and reducing the risk of skin cancer.

While many sun protection products are eligible, some items containing SPF might not qualify if their primary purpose is cosmetic or if the brand markets them predominantly as beauty products rather than dedicated sun care. The product’s main function must be to protect the skin from sun damage. Consumers should check product labeling to confirm both the SPF level and broad-spectrum designation before purchase.

How to Use Your FSA for Sunscreen

Using your FSA to purchase sunscreen can be done through two primary methods: directly with an FSA debit card or by seeking reimbursement after an out-of-pocket purchase. Many FSA plans issue a dedicated debit card, which functions much like a regular debit card but is linked directly to your FSA funds. This card can be used at the point of sale at approved merchants, such as pharmacies and some grocery stores, that have an Inventory Information Approval System (IIAS) in place.

When using an FSA debit card, the funds are automatically deducted from your account. This method often reduces the need for immediate manual substantiation, as the IIAS system helps verify the eligibility of the purchase at the time of sale.

Alternatively, you can purchase eligible sunscreen using your personal funds and then submit a claim for reimbursement to your FSA administrator. This process typically involves completing a claim form and providing the necessary documentation. Reimbursement claims are generally processed quickly, with funds often deposited directly into your bank account.

Documentation for FSA Claims

Maintaining proper documentation for all FSA purchases, including sunscreen, is important for compliance and potential auditing purposes. Even when an FSA debit card is used, the Internal Revenue Service (IRS) requires that all expenses be substantiated. This means you must keep itemized receipts that clearly show specific details of your purchase. You should retain your receipts even when using the debit card, as your FSA administrator may request them for verification later.

An acceptable itemized receipt for sunscreen should include the date of purchase, the name of the merchant, the specific product name (e.g., “sunscreen SPF 30 broad-spectrum”), and the amount paid. Generic credit card receipts, canceled checks, or simple balance statements are typically not sufficient as they lack the necessary itemized detail. Should your FSA administrator request additional information, having these detailed records readily available will streamline the process and help ensure your claim is approved.