#flex spending

Think it’s too early to start planning your budget for your flexible spending account? Think again! 2018 is just around the corner, and that makes now the perfect time to start thinking about the best ways to budget and spend your employer’s health flexible spending arrangement (FSA).  In fact, in order to be able to contribute to a 2018 FSA, employees need to have already figured out how much to…

“I’m a work from home mom and I hire a babysitter for meetings at home and away.I want to know if those expenses are deductible.”

Short ANSWER: YES! Keep your receipts and file them for ChildCare  at tax time. In fact, you may qualify for $3,000 in tax credits for one dependent, and a maximum of $6,000 for two dependents or more.

I have been asked this numerous times during tax season and by…

Decided to complete my Flex Spending tonight.  For those who don't know what "Flex Spending" is, it is the amount of money you put aside for health related expenses.  

Your company or workplace offers you an option to put a certain amount of money for a whole year into Flex Spending and when you do sign up for it, each paycheck will remove a % of money before taxed into your Flex Spending account.  

So when you do go see a doctor, dentist, eye doctor..etc. You pay the amount of expense first from your after taxed money, but you'll list the expense, fill out a form, and then receive reimbursement through your Flex Spending account.

Why do people do this?  

One, to lower your income taxes to the state and feds on your paycheck

Two, your health expenses are "actually paid" by your before taxed money instead of after taxed money

Three, if you get fired or laid off from your work before the year ends and already used up all your Flex Spending money - you actually gain money.

Why some people don't?

If you don't use all of the Flex Spending money by the end of the year, you lose it... I repeat ... YOU LOSE IT!

Some people figure they don't see the doctor often.

Tips:

Carefully calculate how much you need for your health expenses so you can use up all the money

If you know you might be leaving your company or workplace, be sure to use up all the money or you'll lose it.

Don't forget to use all of your flex spending money before the clock strikes midnight on December 31st.  That's "use it or lose it" money, so stock up on Advil and vitamins if you have to.