Is a Car Seat an FSA-Eligible Expense?
Uncover the specific criteria that determine if common purchases, like car seats, qualify as eligible expenses for your Flexible Spending Account.
Flexible Spending Accounts (FSAs) offer a valuable way for individuals to set aside pre-tax money to cover qualified healthcare expenses. These accounts help reduce out-of-pocket costs by using funds not subject to federal income taxes. A common question arises regarding the eligibility of various items, including whether a car seat qualifies as an FSA-eligible expense.
General FSA Eligibility Criteria
The Internal Revenue Service (IRS) establishes guidelines for what constitutes a qualified medical expense for FSA reimbursement. According to IRS Publication 502, medical expenses are defined as costs primarily incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses that are merely beneficial to general health, personal hygiene, or for cosmetic purposes do not meet these criteria.
Car Seats and FSA Eligibility
Standard car seats are not eligible for reimbursement through a Flexible Spending Account. They are considered general safety items rather than medical necessities, despite their importance for child safety. Car seats do not meet the IRS definition of medical care because their primary purpose is to protect against potential injury, not to treat, diagnose, or manage a health condition.
A rare exception exists if a car seat is prescribed by a medical professional for a diagnosed medical condition. For example, a specialized car seat for a child with a developmental disability or complex medical need might be considered eligible. In such cases, a Letter of Medical Necessity (LMN) from a licensed healthcare provider is required, detailing how the specialized equipment is essential for treating or mitigating the child’s medical condition. This LMN must clearly explain the medical necessity, transforming an otherwise ineligible expense into a qualified one.
Common Eligible FSA Expenses
While car seats are ineligible, many common healthcare expenses are covered by FSAs. These include a wide range of services and products that directly relate to medical care. Examples of eligible expenses include prescription medications, co-payments and deductibles for doctor visits, and dental care such as cleanings and fillings.
Vision care, including eyeglasses, contact lenses, and eye exams, also qualifies. Over-the-counter medications and certain medical supplies, like bandages or blood sugar test kits, are eligible, with some requiring a prescription depending on current regulations. Understanding these common eligible expenses helps account holders utilize their FSA funds for their healthcare needs.