Can You Use FSA on Glasses & Other Vision Expenses?

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax dollars for eligible medical expenses, reducing taxable income. These funds are deducted directly from an employee’s paycheck. An FSA provides a tax-advantaged method for covering out-of-pocket health, dental, and vision expenses that are not reimbursed by health insurance plans.

Eligible Vision Expenses

Many vision-related products and services qualify as eligible expenses under a Flexible Spending Account, following Internal Revenue Service (IRS) guidelines. Prescription eyeglasses, including frames and lenses, are eligible. Prescription contact lenses and related solutions or cleaners also qualify.

Eye exams, vision tests, and medically necessary vision correction procedures like LASIK or PRK surgery are covered. Non-prescription reading glasses can be eligible if used for medical purposes, such as to correct presbyopia. Prescription sunglasses are also covered due to their corrective and protective functions. Purely cosmetic items or non-prescription sunglasses are not eligible for FSA reimbursement.

Using Your FSA for Vision Expenses

Accessing FSA funds for vision expenses can be done directly at the point of purchase using an FSA debit card. This card draws funds directly from your FSA to pay for eligible items or services at optician’s offices or participating online retailers. Many merchants, especially pharmacies and healthcare providers, automatically identify eligible expenses when the FSA card is swiped. This direct payment method simplifies the process by reducing out-of-pocket payments and subsequent reimbursement claims.

Alternatively, if you pay for eligible vision expenses out-of-pocket, you can submit a claim for reimbursement from your FSA. This involves submitting a claim form with itemized receipts through an online portal, mobile application, or by mail. Documentation should include the date of service, provider’s name, a description of the service or item, and the amount charged. FSA funds must be used within the plan year, though some plans may offer a grace period or a limited rollover amount for unused funds.

Documentation and Record Keeping

Maintaining thorough documentation for all Flexible Spending Account transactions is important for IRS compliance. Even when using an FSA debit card, the IRS requires all transactions be substantiated. This means you must prove the expense was for an eligible medical purpose.

Acceptable documentation includes itemized receipts showing the date of service, provider’s name, a detailed description of the service or item, and the total amount. For services processed through insurance, an Explanation of Benefits (EOB) from your insurer also contains necessary details. For items like reading glasses or prescription sunglasses, a doctor’s prescription or note verifying medical necessity may be required to support eligibility. Keep these records organized, digitally or physically, for at least three years from the date your tax return was filed or due, to address any potential IRS inquiries.