Is Rubbing Alcohol an FSA-Eligible Expense?

An FSA, or Flexible Spending Account, offers a way to set aside pre-tax money specifically for healthcare costs not covered by insurance. Many common health-related products and services qualify, often leading to questions about the eligibility of everyday items such as rubbing alcohol.

Understanding FSA Eligibility

The Internal Revenue Service (IRS) defines what constitutes a “qualified medical expense” for FSA purposes. These expenses generally include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, as well as for treatments affecting any structure or function of the body. Common examples of eligible expenses include doctor’s office visits, prescription medications, dental work, and vision care. Over-the-counter (OTC) medicines and medical supplies also fall under these guidelines. Following the CARES Act, which became law in 2020, many OTC items became eligible for purchase with FSA funds without requiring a doctor’s prescription. This change broadened the scope of what individuals could buy with their pre-tax healthcare dollars.

Rubbing Alcohol Eligibility

Rubbing alcohol is an eligible expense under a Flexible Spending Account. It qualifies because it is considered a medical supply used for antiseptic purposes, wound cleaning, and other medical applications. Its primary function aligns with the IRS definition of items used for the prevention or treatment of disease or injury. This item fits into the broader category of first-aid supplies, which are generally FSA-eligible. Other common first-aid items that qualify include bandages, gauze, and antiseptic wipes. These products are all considered necessary for basic health and wound care, making them permissible purchases with FSA funds. Their inclusion helps individuals prepare for minor injuries and maintain health at home.

Using Your FSA for Purchases

There are two main methods for using your FSA funds for eligible purchases like rubbing alcohol. Many FSA plans provide a dedicated debit card that can be used directly at the point of sale. This method simplifies the process, as the purchase amount is automatically deducted from your account. Alternatively, you can pay for eligible items out-of-pocket and then submit a claim for reimbursement from your FSA. For reimbursement, it is essential to keep itemized receipts that clearly show the product purchased, the date of purchase, and the amount paid. These detailed records are necessary for your plan administrator to process your claim accurately. Maintaining thorough documentation is also important for tax purposes or if your account is ever audited.