How to Use Your FSA or HSA for Allergy Products
Key takeaways:
If you have allergies, you can save money on treatments and products by using a flexible spending account (FSA) or health savings account (HSA).
FSAs and HSAs can help you pay for qualified medical expenses with tax-free dollars. Qualified expenses include prescription medications and medical supplies used to treat allergies.
Depending on the type of allergy product you buy, you may need documentation or a prescription from a qualified healthcare provider to purchase certain items with your FSA or HSA.
If you experience seasonal, environmental, or food allergies, you may be looking for a way to save on necessary treatments and products. And if you have a flexible spending account (FSA) or health savings account (HSA), you may be in luck.
These types of healthcare expense accounts can help you pay for certain allergy products. Contributing to your FSA or HSA account before taxes are deducted stretches your hard-earned dollar further. Here’s everything you need to know about using FSA and HSA funds to purchase — and save on — products for allergies.
FSA- and HSA-eligible allergy products
The IRS provides a detailed list of qualified medical expenses. These are the items and services that you can pay with funds from an FSA or HSA. Most prescriptions, including those used to treat seasonal allergies, are eligible items. Several over-the-counter remedies may also be purchased with FSA or HSA funds. Some eligible allergy-related products include:
Antihistamines
Decongestants
Epinephrine
Nasal sprays and mists
Sinus rinses
Neti pots and nasal wash systems
Anti-itch creams and ointments
Over-the-counter steam inhalers
Allergy alert bracelets (for seasonal, food, and prescription allergies)
Prescription Savings Are Just the Beginning
See what other benefits you qualify for—from cashback cards to cheaper insurance.
Many over-the-counter and prescription products used to treat asthma induced by allergies are also eligible health savings account expenses. When prescribed by a healthcare professional, you may purchase the following items with HSA funds:
Nebulizers
Inhalers
Peak flow meters
In addition to allergy products, you can use that money on eligible out-of-pocket healthcare costs like:
Finding eligible allergy products
A variety of retail sites allow consumers to browse approved lists of HSA- and FSA-eligible items. These tools can be helpful to narrow down products aimed at easing your allergy symptoms.
However, it’s best to verify eligibility by reading your specific health care plan or checking the IRS’s website. Eligibility can change from year to year. This extra step will help you avoid paying out-of-pocket for an allergy remedy you thought was an eligible health savings account expense.
Affording allergy shots
One common way to treat and manage the symptoms of a variety of seasonal and environmental allergies is allergic immunotherapy, often called “allergy shots.” Allergy shots prescribed by a physician, along with any allergy testing to skin prick tests to diagnose allergies, are qualified expenses.
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How do HSAs and FSAs work?
Now that you know how to find out if your allergy expenses are FSA and HSA eligible, let’s learn a little more about these healthcare savings accounts.
FSAs and HSAs allow you to contribute a portion of your pre-tax wages to the account. Contributing to an HSA or FSA before your earnings are taxed means you don’t pay taxes on the money deposited.
In 2023, the maximum you can contribute to an HSA per year is $3,850 for an individual and $7,750 for a family. You can contribute an additional $1,000 if you are 55 and older.
The money in your HSA rolls over every year. You can either use your funds to pay for qualified medical expenses or invest your HSA dollars. Any earnings you receive in your account will grow tax-free. As long as you use your HSA to pay for qualified medical expenses, you won’t have to worry about paying taxes on your withdrawals.
FSA contributions are limited to a set amount per year per employer. In 2023, you can contribute up to $3,050 to a health FSA. But, there are restrictions. Your funds may expire at the end of every calendar year, or may only carry over for a brief time, depending on the terms of the account.
The bottom line
Paying for seasonal, environmental, or food allergy products with funds in either an HSA or FSA can save you money. You don’t pay taxes on the money deposited to either an FSA or HSA. This helps your hard-earned dollar stretch farther when paying for medical expenses.
References
Internal Revenue Service. (2023). Publication 502 (2022), medical and dental expenses.
