Preschool is not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Is Preschool Not FSA/HSA Eligible?
Preschool tuition and fees are considered educational and custodial expenses, not medical expenses. Because preschool programs are designed for child development, learning, and supervision rather than for diagnosing, treating, or preventing a medical condition, they do not qualify as medical care under IRS Code Section 213(d).
According to IRS Publication 502, educational or child care services are not eligible for FSA/HSA reimbursement. Preschool is categorized as a personal or family expense rather than a medical one, even when attendance is recommended by a pediatrician for developmental or social reasons.
What’s Not Covered?
Preschool tuition or enrollment fees
Educational materials, supplies, or meals
Before- or after-school child care
Transportation to and from preschool
Any programs for general development, learning, or socialization
LMN and Exceptions
Preschool is not eligible under any circumstances for reimbursement through an FSA or HSA, and a Letter of Medical Necessity (LMN) cannot make these costs reimbursable.
However, some families may be eligible for reimbursement under a Dependent Care Flexible Spending Account (DCFSA) instead. A DCFSA allows reimbursement for child care expenses that enable the parent or guardian to work, including daycare or pre-kindergarten programs—but not traditional preschool programs focused on education.
To determine eligibility:
Check if your employer offers a Dependent Care FSA (DCFSA).
Review your plan’s guidelines to see if your preschool or daycare program qualifies.
Submit itemized receipts and documentation as required by your DCFSA administrator.
Educational preschool programs remain ineligible under both FSAs and HSAs.
