Covered Expenses
The lists below are only partial lists. Go to the Federal Government’s employee web site for a more detailed list.
For the most detailed information on a particular item, you can also refer to IRS publication 502 Medical and Dental Expenses or IRS Publication 503 Child and Dependent Care Expenses, available at the IRS web site.
Dependent Care
A dependent must be an IRS dependent on your Federal taxes. Eligible expenses include:
- the custodial care of children under the age of 13 who are claimed as an exemption on your federal income tax return or under the age of 13 who are in your custodial care for 50% of the time or greater. Expenses claimed must be for care required so that an eligible employee (and spouse if applicable) can work or attend school on a full-time basis.
- the custodial care of other eligible dependents, such as a disabled spouse or dependent parent, provided the care is required so that an eligible employee (and spouse if applicable) can work or attend school on a full-time basis.
Expenses must be for the following types of dependent care provided during working hours:
- nursery schools
- licensed day care centers
- before and/or after school programs
- private baby-sitters
- institutions that provide custodial care for dependent adults.
There are some NON-COVERED expenses for which your dependent care account cannot be used, such as:
- payments to your spouse, to your child who is under the age of 19, or to any person whom you claim as a dependent on an income tax return
- tuition above nursery school
- meals, fees, materials and transportation
- overnight camps
You are responsible for the expenses, and the documentation of those expenses, being acceptable to the IRS.
Health Care
The Health Care Spending account covers expenses related to your health, vision, or dental care for you, and/or spouse and/or any eligible dependents as defined by the Internal Revenue Service (IRS).
Expenses must be for services or items for which you will not be reimbursed by any insurance program you have, including non-University plans.
Qualified expenses include (but are not limited to) items such as: deductibles, coinsurances and co-payments, dental expenses, hearing aid expenses, prescription glasses, contacts, physical examinations, psychiatric fees, chiropractic expenses, prescription drugs, medical equipment and OTC products used to treat a medical condition. For information on other qualified expenses, go to the Federal Government’s employee web site. Qualified expenses may change at any time.
In order to be allowed by the IRS, some expenses require you submit documentation from a physician of your need for a specific service or item (such as therapeutic massage). The Benefits Office has supplied a Letter of Medical Necessity (PDF) you can use for this purpose. Check the Federal Government’s employee web site for specific documentation requirements.
There are some NON-COVERED expenses for which your Health Care Spending Account cannot be used, such as:
- cosmetic surgery
- hair removal (electrolysis) or hair regeneration
- insurance premiums
- teeth bleaching
- over-the-counter drugs and vitamins used for prevention purposes
- non-prescription medical items and non-prescription lenses (clip-on sunglasses)
You are responsible for the expenses, and the documentation of those expenses, being acceptable to the IRS.