Fact Check: Are Kleenex FSA eligible?

Are Kleenex FSA Eligible?

Introduction

The claim in question is whether Kleenex, a brand of facial tissues, is eligible for reimbursement through Flexible Spending Accounts (FSAs). This inquiry is relevant for individuals looking to maximize their healthcare spending benefits. The eligibility of items for FSA reimbursement is determined by the Internal Revenue Service (IRS) and can often lead to confusion among consumers.

What We Know

1. IRS Guidelines: According to IRS guidelines, expenses must meet specific criteria to be eligible for reimbursement under an FSA. Generally, they must be for medical care as defined under Internal Revenue Code §213(d) 2.

2. FSA Store and Other Resources: Multiple sources, including the FSA Store, indicate that facial tissues, including Kleenex, are not eligible for FSA reimbursement. They classify these products as cosmetic items rather than medical necessities 49.

3. Health Savings Accounts (HSAs): Similar to FSAs, HSAs also do not cover Kleenex. A source specifically states that using HSA, FSA, or Health Reimbursement Arrangement (HRA) funds for Kleenex could result in penalties 3.

4. Additional Context: The CARES Act, enacted in March 2020, expanded the list of eligible medical expenses for FSAs but did not include facial tissues 8.

5. Official FSA Eligibility Lists: The FSA FEDS website and other official resources confirm that facial tissues are not included in the list of eligible expenses 15.

Analysis

The evidence surrounding the eligibility of Kleenex for FSA reimbursement is consistent across multiple credible sources. The IRS publication 2 provides a foundational understanding of what constitutes a qualified medical expense, while the FSA Store and other health-related websites 49 reinforce this by explicitly stating that facial tissues do not qualify.

Source Reliability

• IRS Publications: The IRS is a primary authority on tax-related matters, making its publications highly reliable. However, the interpretation of its guidelines can vary, and it is essential to consult the most current documents.

• FSA Store: This site specializes in FSA-related information and is a trusted resource for consumers. However, it is worth noting that it operates within the commercial space and may have a vested interest in promoting clarity around eligible expenses.

• HSAList.org and GoodRx: These sources provide additional context and information regarding health savings accounts and FSA eligibility. While they are generally reliable, they may not have the same level of authority as IRS publications.

Conflicts of Interest

While most sources cited are reputable, it is important to recognize that commercial entities like the FSA Store may have a bias toward promoting their services. However, the consistency of their information with IRS guidelines strengthens their reliability in this context.

Methodological Considerations

The claim's analysis relies heavily on the interpretation of IRS guidelines and the categorization of products as either medical necessities or cosmetic items. More detailed information regarding the criteria used by the IRS to classify products would enhance understanding.

Conclusion

Verdict: False

The claim that Kleenex is eligible for reimbursement through Flexible Spending Accounts (FSAs) is false. Key evidence supporting this conclusion includes the IRS guidelines, which specify that only medical care expenses qualify for reimbursement, and multiple reputable sources, including the FSA Store, which explicitly state that facial tissues are classified as cosmetic items rather than medical necessities. Additionally, the CARES Act did not expand the list of eligible expenses to include facial tissues.

It is important to note that while the evidence is consistent and reliable, the interpretation of IRS guidelines can be complex, and consumers should always verify the most current information. The reliance on commercial sources, while generally trustworthy, does introduce a potential bias that should be considered.

Readers are encouraged to critically evaluate information regarding FSA eligibility and consult official resources for the most accurate and up-to-date guidance.

Sources

1. Eligible FSA Expenses - FSA FEDS. Retrieved from https://www.fsafeds.gov/support/eligibleexpenses
2. Publication 969 (2024), Health Savings Accounts and Other Tax. Retrieved from https://www.irs.gov/publications/p969
3. Can you pay for Kleenex with an HSA? - HSAList.org. Retrieved from https://www.hsalist.org/kleenex/
4. F | FSA Eligibility List - The FSA Store. Retrieved from https://fsastore.com/fsa-eligibility-list/f#:~:text=Facial%20tissues%20are%20not%20eligible,are%20considered%20a%20cosmetic%20product.
5. PDF Benefit Year 2023-2024 Eligible Expenses for Flexible Spending Account. Retrieved from https://preferredadmin.net/pdf/Eligible%20Expenses%20and%20Not%20Eligible%20Expenses%20for%20FSA%202023-2024.pdf
6. Is a vacuum FSA eligible? - InsuredAndMore.com. Retrieved from https://insuredandmore.com/is-a-vacuum-fsa-eligible
7. Facial Tissues: FSA Eligibility - FSA Store. Retrieved from https://fsastore.com/fsa-eligibility-list/f/facial-tissues?srsltid=AfmBOooLTK8hw1FjSw9fMjvphd3sB9HNLsa29goPjja_tkNT4EkeG9g4
8. FSA-Eligible Items That May Surprise You - GoodRx. Retrieved from https://www.goodrx.com/insurance/fsa-hsa/surprising-items-eligible-for-fsa
9. Facial Tissues: FSA Eligibility - FSA Store. Retrieved from https://fsastore.com/fsa-eligibility-list/f/facial-tissues
10. HSA, HRA, & FSA Eligible Items & Expenses - Cigna. Retrieved from https://www.cigna.com/individuals-families/member-guide/eligible-expenses