Air Conditioner: FSA Eligibility

Air Conditioner: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Savings Account (FSA)
Air conditioner reimbursement may in limited circumstances be eligible with a Letter of Medical Necessity (LMN) with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Air conditioner reimbursement is not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

Air conditioner for general use not eligible.

Treas. Reg. '1.213-1(e)(1)(iii), Private Letter Ruling 8009080

How does air conditioning treat medical conditions?

Air conditioning regulates temperature in an indoor space, and some air conditioner designs may contain air filters that purify air to remove dust, allergens and other particulates. While air conditioners are not designed exclusively to treat a specific medical condition, the IRS will allow individuals and families to cover the cost of an air conditioner, if certain conditions are met.

Air conditioning reimbursement or a tax deduction may be related to the device's ability to help alleviate symptoms for those who suffer from allergies or other respiratory illnesses. Running an air conditioner allows individuals to keep their windows closed and prevent an influx of outdoor allergens, while keeping the home comfortable at the same time. Additionally, those who live in warmer climates and suffer from lung-related conditions can experience difficulties due to poor air quality in these areas, so air conditioners can play a role in helping treat their conditions and improving their quality of life (FSAstore.com).

How is air conditioning reimbursement eligible?

The primary purpose of the air conditioner must be to treat or alleviate a medical condition. To show that the expense is primarily for medical care, a Letter of Medical Necessity recommending the item to treat a specific medical condition is normally required. Air conditioners will only be reimbursed under specific circumstances. To find out if you qualify for reimbursement of an air conditioner, speak with your FSA benefits administrator.