Today TaxMama hears from Shane in California with this idea. “Lets say my kid’s braces cost $7,000. Healthcare pays $2,000; so we pay $5,000. If I have a Flexible Spending Account (FSA) with $5,000 and my wife has an FSA account with $5,000, can we both claim $5,000 each against our respective FSA accounts?”
If the total out of pocket cost, after the Healthcare pays off is $5,000, you and your wife, together, cannot use more than a TOTAL of $5,000 in your FSAs. You can’t each use $5,000. That’s excluding $10,000
for a $5,000 cost? Uh….
You can’t each submit a copy of the same $5,000 orthodontist bill to two separate FSA plans. Good try, though. (My assistant says, “that’s like fraud!”)
Sorry. But I do love your ingenuity.
And yes, this is open enrollment month. Please, remember to take advantage of your flexible spending account to reduce the taxes on bills you’re paying anyway – for childcare, medical, dental and vision care expenses.
And remember, you can find answers to all kinds of questions about flexible spending accounts and other tax issues, free. Where? Where else? At TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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