Is Wart Remover an FSA-Eligible Medical Expense?

A Flexible Spending Account (FSA) offers a tax-advantaged way for individuals to pay for qualified medical expenses. This employer-sponsored benefit allows participants to contribute pre-tax dollars from their salary into an account. These funds can then be used throughout the plan year for eligible healthcare costs, effectively reducing taxable income.

Wart Remover Eligibility

Wart removers are considered eligible medical expenses for FSA reimbursement. This eligibility extends to both over-the-counter (OTC) and prescription wart removal products. The CARES Act of 2020 reclassified OTC medications and healthcare products, including wart removers, as FSA-eligible without a doctor’s prescription.

The products must be marketed for wart treatment. This includes various forms such as topical treatments containing salicylic acid, freeze or cryotherapy kits, and other liquid, gel, pad, or stick applicators designed for wart treatment. Wart removal treatments address a diagnosable medical condition, making them a qualified medical expense under IRS Code Section 213(d).

Using Your FSA for Wart Removers

You can purchase wart removers directly at the point of sale using an FSA debit card. These cards allow for immediate payment for eligible items at approved merchants. When an FSA debit card is used, the transaction auto-approves if the merchant and item are recognized as eligible, reducing the need for immediate receipt submission.

If an FSA debit card is not used or accepted, or if you pay out-of-pocket, you can submit a claim for reimbursement to your FSA plan administrator. This process involves completing a claim form and providing itemized receipts as proof of purchase. Retain all receipts, as they serve as documentation for IRS or plan administrator verification, even if an FSA debit card was used. These receipts should clearly show the date of purchase, the merchant’s name, the item purchased, and the amount.

Understanding General FSA Eligibility

Beyond wart removers, the Internal Revenue Service (IRS) defines eligible medical expenses for FSAs through IRS Publication 502, “Medical and Dental Expenses.” This publication outlines costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, as well as expenses for treatments affecting any part or function of the body. Common categories of eligible expenses include medical, dental, and vision care services, prescription medications, and certain over-the-counter items.

While IRS Publication 502 provides the overarching framework, it is advisable to consult with your FSA plan administrator for specific eligibility details. Plan administrators can offer precise information regarding covered items and any unique requirements your plan might have. This ensures that you maximize the benefits of your FSA while adhering to the specific guidelines of your employer’s plan.