Can You Use an FSA to Pay for Sunglasses?

A Flexible Spending Account (FSA) offers a valuable way to manage healthcare costs by allowing individuals to set aside pre-tax dollars for qualified medical expenses. This arrangement reduces your taxable income while providing funds for health-related needs. A common inquiry involves whether specific items, such as sunglasses, qualify for FSA reimbursement, which depends on established Internal Revenue Service (IRS) guidelines.

Understanding FSA Eligibility

An expense is considered FSA-eligible if it meets the IRS definition of a “medical expense,” which includes costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This means items must primarily serve a health-related purpose, alleviating or preventing illness or disability.

The IRS requires a medical diagnosis or a prescription from a healthcare provider for an expense to qualify. Items solely for general health improvement or cosmetic purposes, such as vitamins or elective cosmetic procedures, do not qualify unless tied to a diagnosed medical condition. This understanding helps determine whether various items, including eyewear, are eligible.

Applying Eligibility to Sunglasses

The eligibility of sunglasses for FSA reimbursement depends on their primary purpose. Prescription sunglasses are eligible because they function to correct vision, directly affecting a structure or function of the body. They are considered a medically necessary item for individuals requiring vision correction while also needing protection from sunlight. This includes various lens coatings, such as polarization, when added to prescription lenses.

Non-prescription sunglasses, however, are not FSA-eligible. While they offer beneficial protection against harmful UV rays, this general health benefit alone does not meet IRS criteria for a qualified medical expense. Exceptions exist for non-prescription sunglasses if required to treat a diagnosed medical condition, such as severe light sensitivity caused by cataracts or glaucoma. In such cases, a Letter of Medical Necessity (LMN) from a healthcare professional, outlining the specific medical need, is required. Reading sunglasses that correct presbyopia are an exception, as they directly address a functional vision impairment and are eligible without an LMN.

Using Your FSA for Eligible Purchases

Once an expense, like eligible sunglasses, qualifies, there are established procedures for using your FSA funds. Many individuals use an FSA debit card, which functions like a regular debit card and can be swiped at the point of sale. Some retailers use an Inventory Information Approval System (IIAS) to automatically verify the eligibility of purchases at checkout.

If an FSA debit card is not accepted or if you prefer to pay out-of-pocket, you can submit a claim for reimbursement from your FSA administrator. Maintain detailed records for all FSA transactions. Required documentation includes an itemized receipt or an Explanation of Benefits (EOB) statement from your insurance provider. This documentation must clearly show the date of service, the type of service or item purchased, the amount charged, the provider’s name, and the patient’s name. For non-prescription items that qualify due to a specific medical condition, a Letter of Medical Necessity (LMN) is required documentation.

Claims can be submitted through online portals, by fax, or via mail, with processing times taking a few business days. Your FSA administrator may request additional documentation, and providing it promptly is necessary to avoid delays or denial of your claim.