FSA Enrollment Considerations
It is important that you estimate your expenses carefully, so as not to lose the money you have elected to set aside.
You cannot use money in your Dependent Care FSA to pay health care expenses or vice versa.
You cannot be reimbursed “in advance” for your expenses. If your care is given in-network, you should save your receipts until you have a total of at least $50 in co-payment charges, and then you may submit those charges for reimbursement.
You can be reimbursed for eligible health care expenses, up to the total of your yearly contributions, even before your contributions to the Health Care FSA have been made. For instance, if you authorize $1,000 in Health Care FSA contributions, $83.33 would be withheld, from your paycheck each month. If you have $250 in eligible expenses in February, you would be reimbursed the full $250, even though your contributions to date were only $166.66.
Your dependent care expenses can be reimbursed only up to the current balance in your Dependent Care FSA. In addition, if you are reimbursed for dependent care expenses through your FSA, the same expenses cannot be applied toward a tax credit on your federal income tax return.
You may want to compare your tax savings for dependent care under the FSA plan with the tax credit you could receive at year-end when you file your federal income tax return. You can claim the tax credit only for expenses that were not reimbursed through your Dependent Care FSA. You should speak with a tax advisor to determine which option is best for you.
Your 2009 - 2010 Flexible Spending Account(s) can only be used to reimburse you for services performed from July 1, 2009 through June 30, 2010. To accommodate any delayed billings, you will be permitted to submit bills for reimbursement up to September 30, 2010, as long as there is sufficient money left in your 2009-2010 account.