![]() One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. ![]() If you are married, generally both you and your spouse must be gainfully employed or looking for work to be reimbursed for expenses. If you are single, you may be reimbursed for expenses incurred due to gainful employment. Gainful employment usually means working or looking for work. To qualify for a Dependent Care FSA you must be “gainfully employed”. A spouse who is physically or mentally incapable of self-care and has the same principal residence as you.Any other tax dependent of yours, such as an elderly parent, who is physically or mentally incapable of self-care and has the same principal residence as you.A tax dependent of yours who is under age 13, or.For a full list of qualified expenses please visit IRS Publication 503.Ī qualifying dependent is broadly defined as: You cannot make any changes or opt-out of the FSA later in the year.Ī Dependent Care FSA can reimburse you for the work-related cost of care for a qualifying dependent. You can elect to participate in an FSA during open enrollment and you must select a contribution amount at that time. Healthcare FSA funds are tied to your employer's plan, that means even if you have already contributed to an FSA with a previous employer you are still eligible to contribute the full $3,050 at your new employer for the remainder of the year. With the Healthcare FSA, there is a 2023 limit of $3,050 that you can set aside pre-tax. For a full list of qualified expenses please visit IRS Publication 502. Health insurance premiums are not eligible expenses. Healthcare FSA’s can cover medical, dental or vision expenses that you would otherwise pay for out-of-pocket, including co-pays and deductibles. Once you are enrolled in an FSA and select the amount you would like to defer you can use those funds for different IRS approved medical expenses. The $1,000 will be broken into even payments from July 1st through December 31st. You decide to put $1,000 in your FSA account. The total amount is then broken up and deducted evenly from each paycheck for the remainder of the year.įor example, you begin work in June and enroll in an FSA on July 1st. With a FSA, you can enroll during the open enrollment period and elect how much you would like to set aside pre-tax for the year. We currently offer two types of FSAs: Healthcare and Dependent Care FSA. A Flexible Spending Account (FSA) is a benefit that employers can offer that allows employees to use pre-tax dollars to pay for out-of-pocket health insurance or dependent care expenses.
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