The IRS is reminding taxpayers and health spending plan administrators that personal expenses for general health and wellness are not considered medical expenses under the tax law.
This means personal expenses, like food or general wellness purchases, are not deductible or reimbursable under health flexible spending arrangements, health savings accounts, health reimbursement arrangements or medical savings accounts (FSAs, HSAs, HRAs and MSAs).
The IRS reminder is due to a rise in companies misrepresenting the circumstances under which food and wellness expenses can be paid or reimbursed under FSAs and other health spending plans.
“Taxpayers should be careful to follow the rules amid some aggressive marketing that suggests personal expenditures on things like food for weight loss qualify for reimbursement when they don’t qualify as medical expenses,” said IRS Commissioner Danny Werfel.