What are Medical Expenses?
Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body.
What does it include?
These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.
What isn't included?
Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness. They don't include expenses that are merely beneficial to general health, such as vitamins or a vacation. You should review your company's plan documents and check with the plan sponsor to understand what is covered.
Examples of Covered Health Care FSA Expenses*
What is it?
This is a pre-tax benefit account used to pay for eligible dependent care services such as preschool tuition, summer camp, after school programs, as well as child or adult daycare. It is simple way to save money while taking care of your loved ones so that you can continue to work. You can save up to 35% on dependent care expenses through this benefit.
You may reduce your overall tax burden as funds are withdrawn from your paycheck for deposit into your account before taxes are deducted.
What are work-related expenses?
Child and dependent care expenses must be work-related to qualify for the credit. Expenses are considered work-related only if both of the following are true:
Examples of Covered and Dependent Care FSA Expenses**
Care for your child who is under age 13
Care for your spouse or a relative who is physically or mentally incapable of self-care and lives in your home
What is it?
When offered by your employer, this flexible solution helps you to maximize tax savings for health expenses. You may pair an eligible Health Savings Account (HSA) with a Limited Purpose Flexible Spending Account (LPFSA) for the purpose of covering certain health expenses.
When paired with an HSA, LPFSAs are limited in use to dental and vision expenses only. These accounts allow you to maximize tax savings while preserving your HSA balances for growth.
Examples of Covered Limited Purpose FSA Expenses*
*See IRS Publication 502 for a complete list of covered expenses at www.irs.gov.
**See IRS Publication 503 for a complete list of covered expenses at www.irs.gov.