Is Tinted Sunscreen an FSA Eligible Expense?
Learn if products combining health benefits with cosmetic features, like tinted sunscreen, are eligible for FSA reimbursement.
Flexible Spending Accounts (FSAs) offer a way for individuals to pay for qualified medical expenses with pre-tax dollars. These accounts allow participants to set aside a portion of their income before taxes are calculated, potentially reducing their taxable income. The primary purpose of an FSA is to help individuals manage healthcare costs by making eligible expenses more affordable. Understanding which items qualify for reimbursement is a common question for many account holders.
Understanding FSA Eligibility
The Internal Revenue Service (IRS) establishes guidelines for qualified medical expenses. An expense must generally be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or affect any body structure or function. This ensures only health and medical care expenditures are eligible for tax-advantaged reimbursement.
Items that serve both a medical and a cosmetic purpose require careful consideration for FSA eligibility. For such dual-purpose items, the expense must primarily be for the prevention or alleviation of a medical condition. If the item is purchased mainly for cosmetic reasons, it does not qualify as a medical expense. Some items may require a Letter of Medical Necessity (LMN) from a healthcare provider to substantiate their medical purpose.
Eligibility of Sunscreen
Sunscreen can be an eligible medical expense. Its primary function is to protect the skin from harmful ultraviolet (UV) radiation, thereby preventing sunburn and reducing the risk of skin cancer. The Centers for Disease Control and Prevention (CDC) recommends using sunscreen to protect against sun damage.
To qualify, sunscreen products must have a Sun Protection Factor (SPF) of 15 or higher. Products with lower SPF values or those designed primarily for tanning purposes are not eligible for FSA reimbursement. The expense must be for a product whose main intent is medical protection rather than cosmetic enhancement. This distinction is important for adhering to federal tax rules regarding medical expenses.
Tinted Sunscreen and FSA Eligibility
The addition of a tint to sunscreen introduces a cosmetic element, which can raise questions about its FSA eligibility. However, if the tinted sunscreen maintains its primary function as a medical preventative, it can still qualify. The tint in such cases is considered an incidental feature.
If the tinted sunscreen meets the SPF requirements and is marketed primarily for its protective qualities, it remains eligible. However, if the tint or other cosmetic features become the predominant reason for purchasing the product, it will not qualify. Individuals should always verify with their specific FSA plan administrator, as interpretations of eligibility can vary among different benefit providers.