FSA Eligible Items at Walmart in 2023: Your Complete Guide to Saving Money
As an experienced online seller, I know that lowering your taxable income is crucial to maximizing profitability. That‘s why flexible spending accounts (FSAs) can be so valuable – they allow you to set aside pre-tax dollars for eligible healthcare costs.
The great news is that Walmart offers thousands of FSA-qualified products, both online and in-store! In this comprehensive guide, I‘ll share insider tips to help you make the most of your FSA funds at Walmart.
How an FSA Works
First, let‘s quickly cover the basics of a flexible spending account. An FSA is an employer-sponsored benefit account that lets you contribute pre-tax earnings to pay for qualified medical expenses throughout the year.
Key Facts About FSAs:
- Contribution limit for 2023 is $2,850
- Funds must be used by end of plan year or you lose the balance
- You can use for healthcare costs for you, your spouse, and tax dependents
- Expenses must be incurred within the plan year to qualify
- Eligible expenses include prescriptions, dental, vision, medical devices, OTC items
Because FSA contributions are pre-tax, you save money by reducing your taxable income. For example, if you earn $50,000 per year and contribute $2,000 to an FSA, you lower your taxable income to $48,000.
Estimated Tax Savings with $2,000 FSA Contribution
| Income | FSA Contribution | Taxable Income | Est. Taxes Owed | Savings |
|---|---|---|---|---|
| $50,000 | $0 | $50,000 | $8,359 | $0 |
| $50,000 | $2,000 | $48,000 | $7,939 | $420 |
As you can see, contributing just $2,000 to an FSA can save around $420 in taxes! Now let‘s go over how you can use that FSA money at Walmart.
FSA-Eligible Products at Walmart
Walmart carries a huge selection of FSA-qualified healthcare products and items online and in their stores. Some top categories include:
- Prescription eyeglasses and contacts
- Dental care – electric toothbrushes, whitening kits
- Diabetic care – glucose meters, test strips
- OTC medicines – pain relievers, cold medicine
- Baby care – breast pumps, bottle sterilizers
- Women‘s health – pregnancy tests, menstrual products
- Mobility aids – canes, wheelchairs, compression socks
On Walmart‘s website, they make it easy to identify FSA-eligible products. There is a page dedicated to showcasing all FSA-qualified items organized by category.
When searching or browsing on Walmart.com, you can also filter products by "FSA Eligible" to only see items that qualify. This makes it simple for shoppers to find healthcare products that can be purchased with FSA dollars.
Using Your FSA Card at Walmart In-Store
If your employer provides an FSA debit card, you can use this to purchase eligible items directly from your FSA balance at Walmart locations. Here‘s a step-by-step guide:
Add your FSA card to the Walmart Pay app to easily access it when checking out.
When shopping in-store, don‘t pre-tally which items qualify and which don‘t. Walmart‘s system will handle that automatically!
At checkout, swipe your FSA card first before paying with any other form of payment.
Walmart uses an inventory information approval system (IIAS) that will automatically approve FSA-eligible purchases using the product barcodes.
Any ineligible items will not be paid for by the FSA card. You can then use another payment method to cover these.
The receipt will show the amount paid from the FSA card versus any other form of payment.
Save the itemized receipt in case you need to verify eligible purchases later.
This seamless process makes it easy to use your FSA dollars at Walmart locations. The IIAS technology removes the guesswork of figuring out which items qualify and which don‘t.
Get Reimbursed for Online Walmart Orders
Unfortunately, Walmart.com does not currently accept FSA cards directly as payment. But not to worry, you can still use your FSA funds for online orders! Here‘s what to do:
Place an order on Walmart.com as normal. Pay with a credit card or other accepted payment method.
Save the online order confirmation showing your itemized purchases.
Submit this to your FSA administrator along with a reimbursement request form.
You will receive reimbursement via direct deposit or check.
Typically you must submit the request within 180 days of the purchase date.
While not as seamless as paying directly with an FSA card, this reimbursement process allows you to leverage your FSA dollars for Walmart.com purchases.
As an ecommerce seller, I use this strategy frequently to purchase FSA-eligible products online and then get reimbursed later. It provides me with significant tax savings!
Maximize Your Contributions
To optimize your tax savings, strategically plan your FSA contributions to match your expected healthcare expenses for the coming year.
The IRS sets the maximum contribution limit, which is $2,850 for 2023. But your specific employer determines the actual cap on contributions, which could be lower than the IRS limit.
Keep these tips in mind when deciding how much to contribute:
Review your receipts from last year to estimate upcoming costs
Account for recurring expenses like contact lenses or prescriptions
Consider adding dependents like babies or elderly family members
Plan for bigger one-time medical expenses if you have procedures scheduled
Remember that any funds not used by year-end are forfeited!
As you project your expenses, contribute up to the max allowed by your employer. This will maximize your pre-tax savings.
Use It or Lose It? Plan Ahead to Avoid Forfeiting Funds
One potential downside of FSAs is that any funds left unused at year-end are forfeited, according to the standard "use it or lose it" policy. However, there are a few options to help avoid leaving money on the table:
Carryover – Up to $570 can carry over into the next year if your plan allows it.
Grace Period – Spend leftover funds up to 2.5 months into the new year if your plan offers a grace period.
FSA Store – Check if your plan administrator has an online FSA store to purchase eligible items after the deadline.
Runout Period – Submit receipts for reimbursement up to 90 days after the plan year ends if your employer allows a runout period.
Stock Up – Before the deadline, stock up on recurring necessities like contact solution at Walmart using your FSA dollars.
With strategic shopping and planning, you can come close to using 100% of your elected FSA amount. As a seller, I treat it like a game to maximize contributions and minimize forfeited funds!
Common FSA Purchases at Walmart
Here are some of the most frequently purchased FSA-eligible products at Walmart, based on my experience:
OTC Medicines – Cold/allergy/flu medicine, pain relievers
Dental Care – Electric toothbrushes, dental floss, whitening kits
Diabetic Supplies – Glucose test strips, lancet devices, insulin syringes
Vision Care – Reading glasses, contact lens solution
Women‘s Health – Pregnancy tests, menstrual products
Baby Care – Humidifiers, thermometers, bottles
Sunscreen – SPF sunscreen, sun protective clothing
Compression Socks – Support hose, compression sleeves
Focus on these categories during your regular Walmart shopping trips to maximize FSA savings!
Tax-Saving Strategies for Online Sellers
As an ecommerce seller myself, here are some of my top tips for leveraging an FSA to lower your taxable income and sales tax obligations:
Use your FSA for health insurance co-pays, prescription costs, eyeglasses, and dental work.
Stock up on OTC medications that your family regularly uses.
Purchase sun protection clothing and sunglasses to stay safe while sourcing products.
Buy compression socks for standing during long days of inventory and shipping work.
Get ergonomic products like sit-stand desks, wrist cushions, and anti-fatigue mats.
Have an HSA in addition to the FSA for even more tax-advantaged savings.
Take advantage of the pre-tax savings on healthcare costs that directly relate to your business.
Consult a tax professional to optimize your specific situation.
The Bottom Line
As you can see, Walmart offers an abundance of FSA-eligible options both online and in-store. While you cannot directly use an FSA card online, the reimbursement process is straightforward.
Hopefully this guide provided you with plenty of tips and strategies for maximizing your flexible spending account savings. Just remember to use it or lose it by stocking up on recurring healthcare necessities at Walmart before your FSA deadline.
