Flexible Spending Arrangements (FSAs)
Updated: 3/16/2013
Article ID: GEN85359
A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses.
FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution. The employer may also contribute.
Note. Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for FSAs on your income tax return.
You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) if they were paid with pre-tax dollars from an FSA.
