What Makes a Sunscreen FSA Eligible?
Navigate FSA eligibility for sunscreen. Learn the exact requirements and characteristics needed for reimbursement.
A Flexible Spending Account (FSA) allows individuals to use pre-tax income for various healthcare expenses. These employer-sponsored accounts let individuals set aside money from their paycheck before taxes are deducted, reducing taxable income. FSA funds can pay for eligible medical, dental, and vision care costs, including certain over-the-counter products. Sunscreen may qualify as an eligible expense, depending on specific criteria.
General Eligibility Requirements for Sunscreen
The Internal Revenue Service (IRS) defines a qualified medical expense as costs paid for the “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” This definition determines what can be reimbursed through an FSA. Expenses merely beneficial to general health or for cosmetic purposes do not qualify.
Sunscreen is considered an eligible over-the-counter (OTC) medical expense because its primary purpose is to prevent skin damage and disease. A physician’s prescription is no longer required for OTC medicines and certain health products, including sunscreen. This change broadened the scope of eligible items for preventive care.
Specific Sunscreen Characteristics for Eligibility
To be FSA eligible, sunscreen must meet specific protective criteria. The product must have a Sun Protection Factor (SPF) of 15 or higher. This SPF rating indicates the level of protection against ultraviolet B (UVB) rays, which are a primary cause of sunburn.
Beyond SPF, the sunscreen must also be labeled as “broad-spectrum.” Broad-spectrum protection signifies that the product defends against both UVA and UVB rays. UVA rays contribute to skin aging and skin cancer, while UVB rays are responsible for sunburn. Sunscreens containing active ingredients like zinc oxide and titanium dioxide typically provide this comprehensive broad-spectrum protection.
Both SPF 15 or higher and broad-spectrum protection highlight the medical necessity of the product for preventing sun-related skin damage and diseases. Products primarily marketed for cosmetic enhancement or tanning, even if they contain some SPF, do not meet the requirements for FSA eligibility. The product’s main function must be disease prevention.
Documentation for Reimbursement
When seeking reimbursement for eligible sunscreen purchases, proper documentation is required. Individuals must retain an itemized receipt that shows key information: the product name, purchase date, and total amount paid.
The receipt should specify the SPF and broad-spectrum nature of the sunscreen. If the receipt lacks these details, provide additional proof, such as product packaging or a detailed description from the retailer, to verify it meets the required criteria. Keep these records for a minimum of seven years, as the IRS may audit health spending accounts. While an FSA debit card may facilitate direct payment, retaining itemized receipts remains an important practice for compliance.
Non-Eligible Sunscreen and Related Products
Not all sun-protective products qualify for FSA reimbursement. Sunscreens with an SPF lower than 15 are not eligible, as they do not meet the minimum protection standard for medical prevention. Products not labeled as “broad-spectrum” also do not qualify.
Products where sunscreen is an incidental ingredient, rather than the primary purpose, are excluded. This category includes cosmetics, makeup, or moisturizers that contain a low SPF but are primarily intended for aesthetic or general skincare. Tanning lotions, self-tanners, or other cosmetic items designed for enhancing appearance are not eligible, even if they contain a sun protection factor. The IRS guidelines emphasize that the product’s main function must be medical protection against sun damage, not cosmetic enhancement or facilitating tanning.