Over-the-counter drugs covered by flex plans.The Treasury Department and the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. recently announced that over-the-counter drugs could be paid for with pretax dollars through health care flexible spending accounts flexible spending account, n an employee reimbursement account primarily funded with employee-designated salary reductions. Funds are reimbursed to the employee for health care (medical and/or dental), dependent care, and/or legal expenses and are . Guidance has been issued clarifying that reimbursements for nonprescription non·pre·scrip·tion adj. Sold legally without a physician's prescription; over-the-counter. drugs by an employer's health plan are excluded from income. Rev. Ruling 2003-102 states that the statutory exclusion for reimbursements of employee health expenses is broader than the itemized deduction Itemized Deduction A deduction from a taxpayer's taxable adjusted gross income that is made up of deductions for money spent on certain goods and services throughout the year. for medical expenses, which doesn't apply to nonprescription drugs. For more information and to access Rev. Ruling 2003-102, go to www.irs.gov/ newsroom/article/0,,id = 112623,00.html. |
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