What are the best things to spend FSA money on?

Editorial team Published on

The best Flexible Spending Account (Fsa) eligible items include everyday health essentials, over-the-counter medications, and high-value medical devices that you can easily purchase online or in-store.

Top Everyday & First-Aid Essentials

  • Sunscreen: Broad-spectrum sunscreens with SPF 15 or higher qualify as eligible health products.
  • First-Aid Kits: Portable emergency packs, bandages, and antiseptic ointments are fully covered.
  • Pain Relief: Over-the-counter pain relievers like ibuprofen, acetaminophen, and heating pads qualify.
  • Menstrual Products: Tampons, pads, and menstrual cups are fully eligible.

High-Value Tech & Monitoring Devices

  • Blood Pressure Monitors: Home digital cuffs and monitors are straightforward qualifying medical devices.
  • ThermaGuns & Massagers: Percussion massage devices meant for pain relief qualify.
  • Thermometers: Digital and infrared thermometers are standard diagnostic tools covered under accounts.

Unexpected & Specialty Items

  • Acne & Medicated Skincare: Acne treatments and medicated eczema creams qualify when addressing a diagnosed condition.
  • Air Purifiers & Humidifiers: These devices often qualify (some may require a Letter of Medical Necessity depending on your specific plan).
  • Reading & Prescription Glasses: Prescription eyewear and contact lens solutions are top high-value uses for remaining funds.

You can browse and verify thousands of approved products directly through the FSA Store or check selection guides via retailers like Walgreens.

How to spend FSA money quickly?

You can quickly spend leftover Flexible Spending Account (FSA) money by buying eligible health items online or scheduling fast medical appointments.

An FSA is a pre-tax account from your job that usually follows a use-it-or-lose-it rule by the end of the year.

Buy Eligible Online Items

  • Stock up on essentials: Purchase daily items like sunscreen (SPF 30+), acne treatments, and menstrual products.
  • Get over-the-counter (OTC) medicine: Buy pain relievers like ibuprofen, allergy medicine, and first-aid kits.
  • Order big-ticket gear: Buy blood pressure monitors, reading glasses, or a high-end massage device.
  • Use dedicated shops: Shop directly using your FSA card on sites like FSA Store or major retailers like Amazon and CVS.

Schedule Quick Appointments

  • Book eye and dental care: Set up an immediate dental cleaning or an eye exam for new prescription glasses or sunglasses.
  • Refill prescriptions: Call your pharmacy to refill active prescription medications before your deadline.
  • See a specialist: Book appointments for physical therapy, chiropractic care, or acupuncture if your plan covers them.

Can I buy an Apple Watch with FSA?

You can buy an Apple Watch with FSA (Flexible Spending Account) funds only if you have a Letter of Medical Necessity (LMN) from a licensed doctor.

Why It Is Not Automatically Eligible

  • General Wellness: The FSA Store classifies smartwatches as general wellness and lifestyle devices rather than primary medical tools.
  • Dual Purpose: Because an Apple Watch handles non-medical tasks like texts, calls, and apps, tax rules state it does not qualify by default.

How to Qualify for Reimbursement

  1. Get a Prescription: Ask your doctor for a signed Letter of Medical Necessity stating you need the watch to treat or monitor a specific diagnosed medical condition (such as an irregular heart rhythm or hypertension).
  2. Submit to Your Plan: Send the letter to your FSA administrator for approval before you buy, or check if they allow retroactive claims.
  3. Buy and File: Purchase the watch using your personal card (your FSA debit card will usually be declined at standard checkout because it is not pre-approved), then submit the receipt and your doctor’s letter to your administrator for reimbursement.

What should I spend my FSA funds on?

You should spend remaining Flexible Spending Account (FSA) funds on high-value medical, dental, or vision care and eligible everyday health essentials before your plan deadline.

👁️ Vision Care

  • Prescription glasses: Upgrade or buy spare pairs.
  • Contact lenses & solution: Stock up on multi-boxes.
  • Prescription sunglasses: Cover eye protection.

🦷 Dental Care

  • Routine cleanings: Pay for upcoming or past visits.
  • Procedures: Cover fillings, crowns, or extractions.
  • Orthodontia: Apply to braces or aligners.

💊 Everyday Health & OTC Items

  • Over-the-counter medicine: Buy pain relievers and allergy relief.
  • Menstrual products: Purchase tampons, pads, and cups.
  • First-aid supplies: Restock bandages, ointment, and kits.
  • Sun care: Stock up on sunscreen (SPF 15+).

📋 Specialized & Wellness Equipment

  • Hearing aids: Buy devices and replacement batteries.
  • Tracking & monitors: Purchase blood pressure or glucose kits.
  • Targeted care: Get items requiring a Letter of Medical Necessity (like massagers or specific specialized supplements).

What is double dipping FSA?

Double dipping with a Flexible Spending Account (FSA) means receiving tax-free reimbursement twice for the exact same eligible out-of-pocket expense.

Common Scenarios

  • Spousal Overlap: Submitting the same medical or dental receipt to both your FSA and your spouse’s separate FSA.
  • Card + Manual Claim: Paying for an item with an FSA debit card and then manually submitting that same receipt for an extra cash payout.
  • Multiple Tax Benefits: Using pre-tax FSA funds to pay for an expense and then also claiming that same expense as an itemized medical tax deduction on your federal return.
  • Cross-Plan Reimbursing: Trying to cover a single bill using overlapping accounts like an FSA and an HSA or an HRA at the same time.

Consequences

  • Repayment: Administrators will force you to pay back the duplicate funds.
  • Account Freezing: Your FSA debit card may be deactivated or future claims blocked.
  • Plan Penalties: Severe or systemic double dipping can threaten the tax-free compliance status of your entire employer-sponsored plan.

Creative ways to use your Flexible Spending Account before the year-end deadline

9 related questions found

Can I buy toilet paper with my FSA?

No, you cannot buy toilet paper with a Flexible Spending Account (FSA).

The IRS classifies toilet paper as a general toiletries and personal hygiene product rather than a medical expense. Because it is a basic household necessity used for routine daily cleanliness and not for diagnosing, treating, or preventing a specific medical condition, it does not qualify for FSA reimbursement.

❌ Other common bathroom items that are NOT FSA-eligible:

  • Toothpaste and toothbrushes
  • Shampoo and conditioner
  • Mouthwash and dental floss
  • Fingernail clippers

🟢 Similar hygiene items that ARE FSA-eligible:

While toilet paper is excluded, certain personal care products are covered under expanded federal guidelines:

  • Feminine hygiene products (such as tampons, pads, and menstrual cups)
  • Incontinence products (such as adult diapers, pads, and disposable underwear)
  • Medicated wipes or creams (if specifically designed to treat a medical issue like hemorrhoids or eczema)

Note: Be aware that online search filters on retail sites may occasionally show general household items when searching for "FSA eligible," but those transactions will ultimately be rejected by your FSA plan administrator.

What is the downside of FSA?

The primary downside of a Flexible Spending Account (FSA) is the strict "use-it-or-lose-it" rule, meaning unspent funds are generally forfeited to your employer at the end of the plan year.

⚠️ Key Drawbacks of an FSA

  • Use-it-or-lose-it rule
    • Unspent money is lost at year-end.
    • Only minor carryovers or grace periods apply if allowed by your employer.
  • Non-portability
    • Funds do not transfer if you change jobs or leave the company.
  • Locked-in contributions
    • Elections are fixed annually and cannot be changed without a qualifying life event.
  • No investment growth
    • Money sits idle without earning interest or returns.
  • Administrative effort
    • Requires saving receipts and submitting manual claims for certain expenses.

Can I put my gym membership on my FSA?

Yes, you can use your FSA Store resources or Flexible Spending Account for a gym membership only if a doctor or licensed clinician provides a Letter of Medical Necessity (LMN) stating that exercise is required to treat a specific medical condition.

Rules for Eligibility

  • General Wellness: Standard gym memberships for general fitness, weight loss, or general health do not qualify.
  • Medical Necessity: If you have a diagnosed condition (such as obesity, diabetes, hypertension, or physical rehabilitation), your doctor can write an LMN.
  • Timing: You must obtain the LMN before you pay for the membership so the expense qualifies for pre-tax reimbursement.

How to Submit a Claim

  1. Get an LMN: Ask your doctor or use a telehealth platform partnered with your provider to get a signed Letter of Medical Necessity.
  2. Pay Out-of-Pocket: Pay your gym dues directly with a personal card.
  3. Submit for Reimbursement: Send your itemized gym contract, payment receipt, and the LMN to your FSAFEDS or FSA plan administrator.

Is the FSA store overpriced?

Yes, FSA Store is generally considered overpriced compared to major retailers like Amazon, Walmart, Target, and Walgreens.

Why Prices are Higher

  • Markups: Many products on the site have significant price markups.
  • Convenience Cost: You pay extra for a curated inventory where every single item is guaranteed to be eligible for Flexible Spending Account (FSA) or Health Savings Account (HSA) use.
  • No Guesswork: Checkout accepts FSA cards directly without requiring you to submit separate receipts or manual reimbursement forms later.

How to Save Money Instead

  • Compare Prices: Use the FSA Store mainly to research eligible product ideas, then buy those same items cheaper elsewhere.
  • Alternative Retailers: Big-box stores and the Amazon FSA Store offer the same over-the-counter health items at lower prices. Just save your itemized receipts to submit to your FSA administrator for reimbursement.

Can I use FSA money for toothpaste?

No, standard over-the-counter toothpaste is not FSA eligible.

Why It Is Ineligible

  • General Health Maintenance: The IRS classifies toothpaste as a personal care and cosmetic hygiene product rather than a medical treatment for a specific condition.
  • Standard Rule: Under IRS Publication 502, daily care items like toothpaste, toothbrushes, and floss are nondeductible personal expenses.

Rare Exceptions

  • Prescription Toothpaste: High-fluoride or specialized medical toothpastes prescribed by a dentist or doctor to treat a diagnosed oral disease or medical condition may occasionally qualify, though approval varies by plan administrator.
  • Documentation Required: To attempt reimbursement for a prescribed medical treatment, you typically need an itemized receipt and a signed Letter of Medical Necessity from your healthcare provider.