by admin | Apr 9, 2026 | Blog
Allergy season is officially here, and for millions of Americans, that means sneezing, itchy eyes, congestion, and sinus pressure. The good news? Many allergy relief essentials are FSA and HSA eligible, meaning you can use pre‑tax dollars to protect your health and your wallet at the same time.
If you have a Flexible Spending Account (FSA) or Health Savings Account (HSA) and want to spend your funds wisely this allergy season, here are the top five FSA/HSA‑eligible items that help relieve seasonal allergies right now.
1. Antihistamines
Why they help: Antihistamines reduce sneezing, runny noses, and itchy eyes caused by seasonal allergies.
FSA/HSA‑eligible options include:
- Claritin® (loratadine)
- Zyrtec® (cetirizine)
- Allegra® (fexofenadine)
- Benadryl® (diphenhydramine)
✅ No prescription required.
🔗 Eligibility info: https://fsastore.com/learn-otc-antihistamines
2. Nasal Sprays & Saline Rinses
Why they help: These products target congestion directly by reducing inflammation or flushing out allergens.
Eligible products include:
- Saline sprays and rinse kits
- Flonase®, Nasacort®, Rhinocort®
✅ Commonly FSA/HSA eligible when used for allergy relief.
🔗 Eligibility info: https://fsastore.com/learn-nasal-sprays
3. Allergy Relief Eye Drops
Why they help: Eye drops relieve itching, redness, and watery eyes caused by pollen and airborne allergens.
Eligible options include:
- Antihistamine eye drops
- Preservative‑free allergy eye drops
✅ Must be labeled for allergy or medical use (not cosmetic).
🔗 Eligibility info: https://fsastore.com/learn-eye-care
4. Air Purifiers & HEPA Filters
Why they help: Air purifiers reduce pollen, dust, and pet dander inside your home.
⚠️ May be FSA/HSA eligible with a Letter of Medical Necessity for allergies or asthma.
🔗 Eligibility info: https://fsastore.com/learn-air-purifiers
5. Humidifiers
Why they help: Humidifiers ease dry air that can worsen sinus irritation and nasal congestion.
⚠️ Typically requires a medical diagnosis and Letter of Medical Necessity.
🔗 Eligibility info: https://fsastore.com/learn-humidifiers
How to Use Your FSA or HSA for Allergy Season
To maximize your benefits:
- ✅ Shop items clearly marked FSA/HSA eligible
- ✅ Keep receipts or order confirmations
- ✅ Use FSA funds before annual deadlines
- ✅ Check eligibility before purchasing higher‑ticket items
Allergy season doesn’t have to mean discomfort—or overspending. By using your FSA or HSA dollars wisely, you can stock up on proven allergy relief products while saving money with pre‑tax funds.
From antihistamines and nasal sprays to eye drops, humidifiers, and air purifiers, these FSA/HSA‑eligible items can help you breathe easier all season long.
by admin | Apr 8, 2026 | Blog
Tax season sneaks up fast, and with the tax deadline right around the corner, it’s easy to forget that some employee benefits come with extra tax forms. If you used certain health or family‑related benefits this year, the IRS may expect a little more information when you file.
The good news? Only a few benefits actually need tax forms. Here’s a quick, simple breakdown.
Used an HSA? You’ll Need to File a Form
If you contributed to a Health Savings Account (HSA) or used HSA money for medical expenses, you’ll need to report it on your tax return.
Forms you may see:
- Form 1099‑SA – Shows how much money you took out of your HSA
- Form 5498‑SA – Shows how much money went into your HSA (for reference)
- Form 8889 – This form must be filed with your tax return
Even if you didn’t spend your HSA money, Form 8889 is still required if you made contributions.
Have a Dependent Care FSA? There’s a Form for That
If you used a Dependent Care FSA to pay for childcare or care for an adult dependent, this benefit must be reported.
Form you’ll need:
- Form 2441 – Dependent Care Expenses
This form helps the IRS make sure your dependent care benefits are reported correctly.
Helpful reminder: Healthcare FSAs do NOT require tax forms—only Dependent Care FSAs do.
Employer Helped With Adoption Costs?
If your employer provided adoption assistance, the IRS requires you to report it.
Form you’ll need:
- Form 8839 – Qualified Adoption Expenses
This form shows how adoption‑related benefits affect your taxes.
Quick Check Before You File
Before you hit “submit,” make sure you have tax forms for:
- HSA contributions or withdrawals
- Dependent Care FSA expenses
- Adoption assistance benefits
Having the right forms ready can help you avoid filing delays, errors, or IRS follow‑ups.
by admin | Mar 23, 2026 | Blog
Your company wants to offer “healthy lifestyle” sessions next year — awesome! And employees who attend all sessions will receive a $200 cash bonus. But one big question comes up:
Will employees have to pay taxes on that $200?
Short answer: Yes.
Here’s the easy explanation.
What Part of a Wellness Program Is Tax‑Free?
Things like:
- Health screenings
- Flu shots
- Coaching or health education
These aren’t taxable, because they count as health benefits.
When Wellness Rewards Are Taxed
If the reward is cash or basically the same as cash (like a gift card), the IRS treats it like extra pay.
So the $200 wellness bonus:
- Will be taxed
- Will show up on an employee’s W‑2
- Will have regular payroll taxes taken out (like any paycheck)
It doesn’t matter that the bonus is tied to being healthy — cash is still cash in the eyes of the IRS.
What Rewards Aren’t Taxed?
Some wellness incentives can be tax‑free, such as:
- Lower health insurance premiums
- Extra employer money added to an employee’s HSA, FSA, or HRA
These are treated like health plan benefits, not income.
Be Careful of “Tax‑Free Cash” Wellness Programs
Some wellness vendors claim they can give employees tax‑free cash by using salary reductions. These programs usually:
- Make employees pay a high “premium”
- Then give them money back for completing wellness activities
But this money is really just employees getting their own pre‑tax dollars back — and it isn’t actually tax‑free.
These programs are often misleading and can cause compliance problems.
Do You Need to Worry About Medical Privacy Rules?
Not really — in this case.
Your wellness sessions:
- Don’t require employees to share health info
- Don’t ask for medical results
- Don’t involve screenings
So laws like HIPAA, GINA, and the ADA aren’t heavily triggered. Still, it’s a good idea to have legal counsel glance at any wellness incentive program before launching it.
The Bottom Line
Here’s the simplest way to think about it:
✔ If the reward is cash or a gift card → it’s taxable.
✔ If the reward lowers insurance costs or adds money to a health account → usually not taxable.
Your $200 wellness bonus = taxable income for employees.
Source: Thomson Reuters
by admin | Mar 11, 2026 | Blog
As the March 15 FSA grace period gets closer, lots of people are taking a last look at their Flexible Spending Account (FSA) balances and figuring out how to use any leftover dollars before they disappear. If your employer offers a grace period, you get an extra 2.5 months—through March 15, 2026—to spend any remaining 2025 FSA funds. After that date, any unspent money goes back to your employer under IRS rules.
Knowing how the grace period works—and what you’re still allowed to buy—can make the difference between losing money and putting every dollar to good use.
What Is the FSA Grace Period?
The IRS gives employers the option to extend your FSA spending window by 2.5 extra months, which means you can continue using the previous year’s funds until March 15. So, if you still have 2025 money left in your account, you can use it on eligible expenses incurred up to March 15, 2026.
A few things to keep in mind:
- Your employer chooses the rules. They can offer either a grace period or a carryover (up to $680 for 2026), but they can’t offer both.
- Some plans also include a run‑out period, which simply gives you extra time to submit receipts—but doesn’t let you incur new expenses.
- Since every employer sets their own FSA options, it’s always a good idea to check the details of your specific plan so you know exactly what deadlines and exceptions apply to you.
What Can You Buy With Your FSA Funds Before March 15?
Here are the top five most useful, season‑ready picks from FSA Store — all guaranteed eligible and perfect for early‑spring needs.
1. Sunscreen (SPF 15+ Broad Spectrum)
A must‑have as the weather warms. All sunscreens SPF 15+ and broad‑spectrum are FSA‑eligible, and FSA Store carries dozens of options.
Shop here: Sunscreen Collection
2. Cold & Allergy Relief
Whether it’s lingering cold season or rising spring allergies, you can use FSA dollars on OTC remedies — no prescription required under current rules.
Shop here: Cold & Allergy Category
3. First Aid Kits
A fresh first‑aid kit is always a smart buy — especially with outdoor season coming up. Choose from family kits, travel kits, or expanded medical kits.
Shop here: First Aid Kits & Supplies
4. Contact Lens Solution
Daily essentials for contact lens wearers — cleaning solution, disinfecting systems, rewetting drops, and lens cases are all eligible.
Shop here: Contact Lens Care
5. Heating Pads
Perfect for muscle tension, cramps, or easing the aches that come with getting active again. FSA Store carries everything from standard pads to weighted massaging options.
Shop here: Heating Pads
Tips to Maximize Your Remaining FSA Dollars
- Check your balance today. Log into your account and verify how much you have left.
- Shop verified FSA‑eligible products. Online marketplaces like FSA Store carry only approved items, reducing guesswork.
- Book appointments immediately. Spots fill quickly before the deadline.
- Save receipts. Some expenses may require documentation or letters of medical necessity.
If your plan includes the grace period, March 15, 2026 is your absolute last day to incur expenses using 2025 FSA funds. Don’t let your remaining balance disappear—smart spending now means more value from your pretax dollars.
by admin | Feb 9, 2026 | Blog
Adoption is a life‑changing journey, but it also comes with significant financial challenges. While the federal adoption tax credit offers meaningful relief, many employees still struggle to cover upfront expenses or fully benefit from the credit. For employers—especially small companies working with tight benefits budgets—the question often becomes: Should we offer adoption assistance benefits when a tax credit already exists?
The short answer: yes. And here’s why.
1. Adoption Expenses Often Exceed the Federal Tax Credit
For 2026, the federal adoption tax credit allows up to $17,670 per child, with up to $5,120 refundable. While helpful, adoption costs can easily surpass these limits. Private domestic, agency, and international adoptions often range from $20,000 to over $50,000.
Employer adoption assistance can help fill this financial gap, reducing out‑of‑pocket expenses for employees and making adoption more accessible.
2. Employees Typically Use the Tax Credit First—But It Doesn’t Replace Employer Support
Because employer‑provided adoption benefits are treated as taxable wages for FICA purposes, most employees will understandably use the tax credit first. The credit usually offers greater financial value upfront.
However, the credit alone rarely covers all expenses—and employees can use both the tax credit and employer reimbursement, as long as it’s not for the same dollar of expense.
Employer benefits remain a critical supplement.
3. Lower‑Income Employees Often Can’t Use the Full Tax Credit
Even with a partially refundable credit, lower-income employees may not have enough tax liability to use the credit’s full value. While unused credits can be carried forward for up to five years, not everyone benefits fully before credits expire.
Employer-provided assistance can help bridge the gap, giving employees meaningful financial support regardless of their tax liability.
4. Employer Reimbursements Improve Employee Cash Flow
Unlike the tax credit—which can only be claimed after finalizing expenses—adoption assistance benefits can provide immediate financial relief. Whether through direct payments or quick reimbursements, employer support can help employees:
- Avoid costly personal loans
- Manage sudden or large adoption expenses
- Reduce financial stress during an emotionally intense process
For many families, improving cash flow is just as valuable as reducing the total cost of adoption.
5. Employers Can Offer Adoption Benefits With Minimal Cost
One major misconception is that offering adoption benefits requires a large employer contribution. In reality, a qualified adoption assistance program can be established with little or no employer funding.
Here’s how:
- Employees can use pre‑tax salary reductions to fund adoption expenses through a cafeteria plan.
- Special‑needs adoptions receive unique tax treatment—employees may qualify for a full income tax exclusion simply because an employer has a qualifying program in place, even if the employer contributes nothing.
This means even small companies can provide meaningful value at minimal cost.
6. Adoption Benefits Strengthen Recruitment, Retention, and Culture
Today’s workforce cares deeply about family-friendly policies. Adoption assistance benefits can:
- Set your company apart from competitors
- Support diversity in family-building paths
- Foster a compassionate, inclusive culture
- Appeal to employees who value equity between biological and adoptive parents
Since most employers already subsidize the cost of childbirth through health insurance, offering adoption benefits promotes fairness and signals a genuine commitment to employee well-being.
Even with a federal tax credit in place, employer-provided adoption assistance benefits offer unique financial, emotional, and practical support that the tax credit alone cannot. For many companies—large and small—these benefits are a powerful way to demonstrate values, strengthen your employer brand, and support employees as they grow their families.
Source: Thomson Reuters
by admin | Jan 12, 2026 | Blog
Flu season is in full swing, and being prepared can make all the difference. The best part? You can use your FSA or HSA funds to stock up on these health essentials without spending extra out-of-pocket.
Here are the top 5 FSA/HSA-approved products to keep you healthy this season:
1. Thermometers
A reliable thermometer is a must for tracking fevers. Digital and smart thermometers are FSA/HSA eligible and help you monitor symptoms accurately.
🔗 Buy a FSA‑eligible thermometer
2. Over-the-Counter Medications
Pain relievers, fever reducers, and cough/cold medicines are often eligible with a prescription. Check your FSA/HSA store for flu symptom relief bundles.
🔗 Shop FSA‑eligible cold & flu meds
3. Humidifiers
Combat dry air and soothe congestion with a humidifier. Many models qualify for FSA/HSA coverage.
🔗 See eligible humidifiers
4. Saline Nasal Sprays
Affordable and effective, saline sprays help relieve nasal congestion and keep your sinuses clear.
🔗 Buy FSA/HSA‑eligible saline spray
5. Face Masks & Hand Sanitizers
Preventing the spread of germs is just as important as treating symptoms. Stock up on masks and sanitizers—both are typically covered.
🔗 Learn about mask & sanitizer eligibility
Why Use FSA/HSA Funds?
Using your tax-free dollars for flu season essentials is a smart way to save money while staying healthy. Don’t forget to check your FSA/HSA store for seasonal deals before your plan year ends!
For a full list of all eligible FSA items click here.
