Every December it’s the same story. You open your benefits portal, see that stubborn FSA balance staring back at you, and feel that familiar mix of panic and mild annoyance. You contributed with the best intentions back in January, but life happened – fewer doctor visits than expected, maybe you finally got those new glasses in November – and now you’re racing the calendar.
I’ve been there more times than I care to admit. The “use it or lose it” rule feels almost cruel when you realize you’re about to hand money back to your employer that you already paid taxes on. But over the years I’ve learned something that completely changed the game: you don’t have to choose between emptying your FSA and maximizing your credit card rewards. In fact, you can often do both at the same time.
Why Pairing FSA Spending with Credit Cards Is a No-Brainer
Here’s the simple truth most people miss: you’re allowed to pay for FSA-eligible expenses with any credit card you want, then submit the receipt for reimbursement later. That single step unlocks bonus categories, welcome offers, statement credits, and travel perks you’d otherwise leave on the table.
Think about it. Instead of paying directly from your FSA debit card and earning exactly zero rewards, you can run the purchase through a card that gives you 3%, 5%, or even an effective 10–20% back when you factor in annual credits. The reimbursement hits your bank account tax-free either way. The only thing that changes is the extra money or points landing in your pocket.
First Things First – Understand Your Deadlines
Before we dive into the fun stuff, let’s get the boring (but crucial) details out of the way.
- Most health FSAs require you to incur eligible expenses by December 31, 2025.
- You usually have until March 31, 2026 (sometimes April 15) to submit receipts for reimbursement.
- Some employers offer a 2.5-month grace period or let you carry over up to $660 into 2026 – check your plan documents.
- Limited-purpose FSAs (paired with HSAs) and dependent-care FSAs have different rules.
Bottom line: you still have time, but the clock is ticking on what counts as a 2025 expense.
Strategy #1: Stock Up and Earn Bonus Rewards at Drugstores
Drugstores are the low-hanging fruit. Bandages, sunscreen, contact lens solution, menstrual products, allergy meds, first-aid kits – the list of everyday FSA-eligible items is massive, and most drugstore chains code as… well, drugstores.
My personal favorite move every December is a “FSA haul” at CVS or Walgreens using whichever card is paying the highest return that quarter. Right now several no-annual-fee cards still deliver a solid 3% (some even 5% during limited windows).
Even better: many of these items have an insanely long shelf life. I’m still working through sunscreen I bought in the 2023 haul. Zero guilt, pure profit.
Strategy #2: Amazon Is Your Secret Weapon (If You Have Prime)
Amazon sells thousands of FSA-eligible products – everything from blood pressure monitors to acne patches – and if you have an eligible Prime membership, the Prime Visa still pays an unlimited 5% back on Amazon.com purchases.
That’s effectively turning tax-free money into 5% taxable cash back on top. Hard to beat. Just search “FSA eligible” in Amazon’s search bar, filter by Prime-eligible shipping, and watch the rewards pile up.
“Last year I spent $412 on contact lens solution, sunscreen, and a new electric toothbrush. Got $20.60 back in rewards and full FSA reimbursement two weeks later. Felt like free money.”
Strategy #3: Use Statement Credits You Were Going to Waste Anyway
Premium cards are loaded with annual credits that many people never fully use. December is the perfect time to “force” utilization on FSA-eligible purchases.
A few real-world examples I’ve used myself or seen readers pull off successfully:
- Oura Ring credit – Some platinum-level cards offer up to $200 back on Oura Ring purchases. Rings and subscriptions are explicitly FSA-eligible.
- Delivery service credits – Order FSA items through Instacart, DoorDash pharmacy partners, or Uber Eats (some Walgreens locations deliver). Knock out monthly credits while stocking up.
- General travel credits – If you ever drive to medical appointments, parking fees and tolls count. One card famously reimburses the first $300 in any travel each year – including parking garages at hospitals.
The beauty here is the double-dip: the credit wipes out most or all of the charge, you still get reimbursed from your FSA, and any rewards earned on the purchase are pure bonus.
The Gym Membership Loophole (Yes, It Can Work)
Normally gym memberships aren’t FSA-eligible. But if your doctor writes a Letter of Medical Necessity stating that exercise is required to treat a specific condition (back pain, obesity, hypertension, etc.), the rules change.
Suddenly that Peloton statement credit, Equinox credit, or personal-training perk on certain premium cards becomes fair game for reimbursement. It’s niche, but for the people who qualify it’s an absolute windfall.
My Step-by-Step December FSA + Rewards Playbook
Here’s exactly what I’m doing this year (and what I recommend to friends):
- Log into my benefits portal and screenshot the exact remaining balance.
- Make a list of everything I’ll actually use in the next 1–3 years (sunscreen, contacts, bandages, etc.).
- Sort the shopping list by which card gives the highest return at each merchant.
- Place orders or go in-store before December 31.
- Save every receipt in a dedicated folder on my phone.
- Submit for reimbursement in January once all charges post.
- Watch the tax-free money hit my checking account while rewards post separately.
Takes maybe an hour of planning total. The payoff is usually several hundred dollars between rewards and credits.
Common Mistakes That Cost People Hundreds
- Paying with the FSA debit card and missing rewards entirely.
- Forgetting receipts and scrambling in March.
- Assuming something isn’t eligible without double-checking the IRS list (Publication 502 is your friend).
- Buying ineligible items just to “use up” the money – that actually creates taxable income if audited.
Don’t be that person.
Final Thoughts – Turn a Chore into a Profit Center
Emptying your FSA no longer has to feel like a frantic last-minute errand. Treat it like any other optimization game: a chance to extract extra value from money you already set aside.
With a little planning, you can walk into 2026 with a zero FSA balance, a fatter checking account from reimbursements, and a nice stack of extra points or cash back you wouldn’t have earned otherwise.
And honestly? That feels pretty great on January 1st.
Always double-check eligibility with your specific plan administrator and keep receipts. Rules can vary slightly employer to employer.
