A Flexible Spending Account (FSA) allows you to save on your taxes while paying for certain medical bills or day care expenses. You may choose to enroll in the Health Care Spending Account, the Dependent Day Care Spending Account, or both.
When you enroll in an FSA, you chose an amount to be deducted from each paycheck and placed into a special account. The payroll deduction is taken from your pay before federal and state income taxes are calculated and deducted, which means you actually reduce the amount of taxes you pay.
Ohio University's Flexible Spending Accounts are administered by WageWorks. Visit www.wageworks.com to learn more. Enrollment is processed directly through the WageWorks website.
Plan Year Maximum:
You can use your Health Care Spending Account to pay for eligible expenses that are not covered by your medical plan. Use your account to pay for expenses such as deductible and coinsurance, services such as acupuncture, and supplies such as crutches.
Generally an eligible dependent is: a spouse, child(ren) under the age of 26, child(ren) over 26 who are tax dependents, a domestic partner who is a tax dependent. For more information click here.
|Plan Year Maximum:
$2,500 if you are married and file your taxes separately
$5,000 if you are single or you are married and file your taxes jointly.
|Eligible Expenses:||Dependent Care Listing|
You can use your Dependent Day Care Spending Account to pay for nursery school or day care for your child, and in-home care for a dependent adult. Expenses must occur within the benefit plan year (fiscal) for which you are enrolling to be eligible for reimbursement.
For more information on day care eligibility click here.
Visit www.wageworks.com during your annual benefits open enrollment and select 'Open Enrollment'. If you have not utilized the WageWorks system previously you will be asked to create a user ID and password. Use the last four digits of your social security number as the ID code.
While there are many advantages to Employee Spending Accounts, there are also limitations. The IRS has guidelines on which expenses are allowable and disallowable under an FSA. To see a complete list of eligible expenses under a Health Care Spending Account, refer to IRS publication 502. Please read the following information before you decide to participate.
Because your FSA deposits are not taxed, they are subject to these limitations by the IRS:
Deciding whether to contribute to the Dependent Day Care Spending requires that you determine whether it is more beneficial to use an FSA or the tax credit available when completing your federal tax return. The tax credit reduces your taxes owed, whereas an FSA reduces your taxable income. You are encouraged to contact a tax advisor if you are unsure about how either of these options may affect you financially.
Contact WageWorks at 1-877-924-3967