#Commuter Benefits

What is benefit substantiation & why is it important?

July 19, 2022

When pre-tax benefits are used for medical expenses, the IRS requires that every expense from an HRA or FSA be substantiated. The expenses are often substantiated automatically because a system is set up to verify most expenses. However, sometimes an expense can’t be verified. That’s when someone can be asked to provide a benefit substantiation.

The benefit substantiation is important because the expense must be eligible under IRS rules. An FSA or HRA is created by the IRS tax code and allows you to make eligible purchases tax-free. All funds are then required to prove to the IRS they are being used for eligible expenses.

Are you interested in our solutions?

Latest articles

Explore Relevant Topics

Here’s a couple of other relevant topics that you might be looking for. If you’re looking for something else feel free to search for it below.

Commuter Benefits

Financial Well-being

Health + Nutrition

Sustainability

Trends + Insights

Lifestyle

AnytimePay

Employees

New York

Employers

IRS

Lifestyle Spending Accounts

Transit

San Francisco

COVID-19

Lyft

Ticket Restaurant

All Topics

Loading...