No, daycare services are not eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA). These accounts are intended to cover medical expenses and do not include general childcare costs.
Why Is Daycare Not FSA/HSA Eligible?
Daycare is not eligible for FSA or HSA reimbursement because these accounts are designed to cover medical items and services that treat, diagnose, or manage specific health conditions. General childcare services, like daycare, are considered living expenses and do not meet the criteria for medical necessity under IRS guidelines.
However, Dependent Care Flexible Spending Accounts (Dependent Care FSAs) do allow for the reimbursement of eligible childcare costs, including daycare. Unlike Health FSAs, which are reserved for medical expenses, Dependent Care FSAs are specifically designed to help with the costs of caring for dependents while the account holder works or attends school.
