Claim substantiation deadline is March 31 for 2025 FSA purchases

The IRS requires that all health care and limited purpose flexible spending account claims be substantiated with supporting documentation that meets certain requirements.

This means any flexible spending account (FSA) purchase made on your HSA Bank card must be verified as an IRS-qualified medical expense. Because FSA funds consist of pretax dollars, these dollars must be taxed if the purchase is not verified as an eligible expense.

Employees have until March 31 to submit supporting documentation for any outstanding FSA purchase incurred in 2025. Any FSA claims that are not substantiated by the deadline will result in the amount being added to your 2026 W-2 as imputed income and taxed accordingly to stay compliant with the IRS.

Resources

• IRS-qualified medical expenses: Eligibility list
• Tips for substantiating claims: Claim reimbursement for FSA or HRA
• How to submit a claim for reimbursement: Claim reimbursement (Purdue)
• HSA Bank Reimbursement Request Form

Questions

For questions regarding unsubstantiated claims, individuals should contact HSA Bank directly at 800-357-6246 or visit HSA Bank online at www.hsabank.com to substantiate an FSA claim.

For questions regarding tax, individuals should contact a tax advisor or reach out to HSA Bank directly.