“Wow! Who knew that babies were so expensive?” said just about every new parent ever — usually after getting sticker shock over the price of a high-end stroller, or realizing that a cute onesie somehow costs more than their favorite shirt. While parenthood comes with plenty of expenses, there's a silver lining: your FSA might help you save money on more items than you think. From breastfeeding essentials to baby thermometers, you’d be surprised which items are covered — and how much you can save by using your pre-tax dollars.
Let’s explore which baby must-haves qualify.
Baby items that are not FSA eligible
While there are many baby items that are 100% FSA eligible (see below for a searchable list), parents may be surprised to learn that some common baby items are not FSA eligible, including:
Diapers
Ready for a shocking number? The average parent spends about $1,000 a year on diapers, and unfortunately they can't use an FSA to pay for them. This is because, despite being an absolute necessity to all parents, diapers are considered a personal care item and not a medical expense. Regular diapers for newborns and infants are not FSA eligible because they do not treat a medical condition, but rather aid a healthy function of the body. There are some ways to save, however, including sales, coupons, buying in bulk or joining rewards programs. A recent trend in baby showers has been to bring a pack of diapers for the parents-to-be to help give them a head start.
There is one exception to the IRS’s diaper rule: if your child has a specific medical condition requiring special diapers, those might qualify for FSA coverage with a doctor's Letter of Medical Necessity (LMN). Learn more about LMNs here.
Infant formula
Brace yourself for another disappointment: Baby formula isn’t eligible for purchase with your FSA. Why? The IRS classifies formula as a regular food item, not a medical necessity. But, like hacking diaper expenses, parents can save money by using coupons and shopping during sales. If you can't find any coupons, try contacting the company directly on their social channels. They often send coupons for special discounts to parents who reach out.
Baby bottles
Baby bottles may logically seem like an essential expense, but the IRS disagrees — they’re classified as personal care items and not medical expenses. First time moms can include them on a baby shower registry or see if a friend or family member can hand down any gently used bottles. If you already have bottles, you can save money by only replacing the nipples instead of buying brand new bottles.
Baby clothes
It can seem like babies grow out of their clothes overnight, and that can mean a lot of ordering online or trips to the store. Unfortunately, your FSA can’t help here. The IRS classifies baby clothes just like adult clothing — a personal expense rather than a medical one. Here’s a tip: Try connecting with a friend or family member with a slightly older baby who can pass along new or gently worn clothes. It will be a huge help with cost.
FSA eligible baby products
Here’s the good news: Even though the rules on what you can buy with your FSA may be limited to those products that diagnose or treat medical conditions, there are plenty of baby and infant items that are FSA eligible.
Children’s Incontinence Products
Infant diapers are not FSA eligible, but some products for children like nighttime underwear are. Why? Because they’re used to protect against incontinence.. They can wear these both at night and during the day. The Goodnites brand includes popular characters that your child will love.
Baby thermometers
Parents can use their FSA to purchase any type of thermometer, including ear, forehead and rectal. Many pediatricians say that rectal thermometers are the most accurate, as long as your child will tolerate it. Forehead thermometers are the least invasive, but will typically cost the most.
Baby eyewear
If your child needs corrective eyewear, it will be covered by your FSA. You can also use your FSA to purchase cleansing wipes and pay for vision exams.
Nose wipes
Wet nasal saline wipes are FSA eligible. These can be used in place of regular tissues when your baby has a stuffy or runny nose. Nasal saline spray, which can reduce nasal congestion, is also FSA eligible. If your child has a persistent runny nose, a nasal aspirator can help clear the nasal passages. These are also FSA eligible.
Baby sunscreen
Babies need to be protected from sun damage just like adults. All types of baby sunscreen, including lotion, spray, and stick form, are FSA eligible (as long as they are SPF 15 or above and offer broad spectrum protection). Both mineral and chemical sunscreens are eligible, though pediatricians recommend mineral or physical sunscreens for children. Regular adult sunscreen is also FSA eligible.
Breast pumps and accessories
One of the biggest essentials for mothers is a breast pump, which pumps breast milk into a separate bottle or bag that you can use later. Most insurance companies will cover the cost of one breast pump, and you can use your FSA funds to purchase a spare to keep at work.
You can also use your FSA card to buy breast pump accessories like extra storage bags, cleansing wipes, and breast shields.
If you've had a few drinks and want to breastfeed, you can purchase test strips that will measure the amount of alcohol in your breast milk. These strips determine if it's safe to breastfeed or if you need to use formula or pre-pumped breast milk instead. These strips are also FSA eligible.
Mothers suffering from pain associated with breastfeeding can use a lactation massager, which can relieve clogged ducts, reduce pain, and improve milk flow.
Lactation consultant
Mothers who plan to breastfeed can hire a lactation consultant, who will identify any potential problems they might run into. This service is FSA eligible before and after you give birth.
Baby healing ointments & creams
If your baby has a skin condition like dermatitis, eczema or diaper rash, the healing ointments and creams you buy are FSA eligible. Baby lotion is often designed for sensitive skin and may be less harsh than formulas made for adults.
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