Is it more advantageous to use a Medical FSA instead of claiming those expenses as a deduction on my income tax?
The Medical FSA is more advantageous for most people because of the following reasons: On your tax return, your eligible medical expenses will need to exceed a minimum threshold set by the IRS before you can deduct any expenses and receive tax benefits. With a Medical FSA, the first dollar you spend on eligible medical […]
If I use funds from my Medical FSA for medical expenses, can I claim a deduction on my income tax?
No. Because eligible expenses are paid with tax-free dollars from your Medical FSA, you cannot claim the same expenses on your income tax return (no double-dipping).
What will I need to report on my tax return about my Medical FSA contributions?
Information about a Medical FSA does not need to be reported on your tax return. Your W-2 form will not include any tax-free amounts that you contribute to your Medical FSA.
Can I use my Medical FSA for transportation expenses related to eligible medical care?
Yes, transportation expenses (e.g. tolls, parking fees, mileage) required to obtain eligible medical care are eligible for reimbursement. For tolls and parking fees, your claim must be accompanied by a receipt showing the provider, the date of service, and the amount of the expense. Actual mileage incurred with an automobile must be indicated as follows […]
Is a warranty for contact lenses/eyeglasses an eligible expense under a Medical FSA?
No. A warranty is like an insurance policy and is not associated with a specific medical service that has already been provided.
Are my medical insurance premiums eligible expenses under my Medical FSA?
No, insurance premiums of any kind are not eligible expenses per IRS regulations.
Are co-payments and deductibles eligible expenses under my Medical FSA?
Yes, co-payments and deductibles are eligible expenses.
Can the funds in my Medical FSA be used for my spouse and dependents?
Yes. The funds in your Medical FSA can be used for eligible medical services provided for you, your spouse and/or any of your eligible dependents.
My spouse is also offered a Medical FSA at work. Can each of us elect the maximum amount allowed under our respective plans?
Yes. You and your spouse may each elect the maximum amount allowed by your respective plans. However, you cannot receive payment for the same services from both plans (no double-dipping).
What medical services are eligible under my Medical FSA?
In general, eligible services are those that are used primarily to diagnose, prevent, treat or mitigate a physical or mental defect or illness. Services provided for cosmetic reasons and those that are merely beneficial to one’s general health are not considered expenses for medical care.
What is a Medical Flexible Spending Account (FSA)?
A Medical FSA is an account that allows tax-free dollars to be used for payment of eligible medical services not covered or reimbursed by any other source. Medical FSAs are governed by Sections 125, 105, 106 and 213 of the Internal Revenue Code.
How does reimbursement for orthodontia expenses work?
For a plan that allows reimbursement of orthodontia (e.g. Medical FSA), IRS regulations allow reimbursement based on date of payment, date of service or the payment due date on statements/coupons. IRS regulations allow a Medical Flexible Spending Account (FSA) participant to be reimbursed for pre-paid orthodontia services, up to a participant’s annual election amount, before […]
