When can I submit requests to withdraw money from my HRA?
You may request reimbursement at any time. However, many participants accumulate a number of receipts and submit them all at once.
Are all taxes avoided on reimbursements from my HRA?
Yes. Reimbursements from an HRA are NOT taxable for FICA, Medicare, Federal, State and Local taxes.
Are all taxes avoided on earnings deposited to my FSA?
Contributions deposited to an FSA are NOT taxable for Social Security, Federal and most State taxes. Local taxes depend on the municipality to which you pay taxes. City tax is generally not payable in Ohio. Your Social Security benefits may be slightly reduced because of participation in the program. If you participate in the dependent […]
Do I have to file any forms with the IRS at the end of the year?
Yes for the dependent care FSA. To qualify for tax free treatment, you will be required to file IRS Form 2441 (Child and Dependent Care Expenses) with your annual tax return (Form 1040) or a similar form. You must list on Form 2441 the names and taxpayer identification numbers of any persons who provided you […]
If I participate in the work-related dependent care FSA, will I still be able to claim the household and dependent care credit on my federal income tax return?
You may not claim any other tax benefit for the tax free amounts reimbursed by the plan.
For my work-related dependent care expenses I can use the Federal tax credit on my tax return. Which is better, the dependent care FSA or the tax credit?
In general, if your total household income is less than $25,000, the Federal tax credit is better. The dependent care FSA is probably better if your income is higher than $25,000. The FSA may also be better because it has a lump sum limit of $5,000 for all work-related child care expenses regardless of the […]
Does everyone taking the group insurance automatically have their required contribution made pre-tax?
Yes.
What expenses are eligible for reimbursement from a work-related dependent care FSA?
In order to be considered eligible for reimbursement, the expense must have been incurred so that you and your spouse*, if married, can be gainfully employed. Gainful employment includes being a full time student. A few examples are: day camps, nursery schools, before/after school programs, daycare centers and private sitters who claim payment as income […]
What expenses are NOT eligible for reimbursement from a work-related dependent care FSA?
A few examples are: activity fees (i.e. for field trips); late payment fee made to a daycare provider; overnight camp (including the day-time portion); babysitting fees paid for a healthy child while parent is recuperating from an illness (regardless of doctor’s advice.); tuition for schooling in kindergarten or higher; care provided by your child under […]
I work and my spouse (same and opposite sex) stays home with our child. If we send our child to pre-school, can we use the work-related dependent care account?
Unfortunately, no. You may only participate in this account if the care provided enables both you and your spouse to work, seek gainful employment or go to school.