Spend your FSA $Dollars$
Use it or you might lose it!
A flexible spending account (FSA), also called a flexible spending arrangement, is one of a number of tax saving devices helping consumers. An FSA allows the taxpayer to spend income on health related products before it is fully taxed. An FSA allows an employee to set aside a part of their earnings to pay for qualified expenses as established in the FSA plan for medical and dependent care expenses. Money deducted from an employee's pay goes directly into an FSA without being subject to payroll taxes – this is how the consumer saves money. View the Federal Office of Personnel Management (OPM) FSA Guide. Or download the PDF here.
If I don’t use my FSA funds will I lose them?
Thanks to the Patient Protection and Affordable Care Act, unused funds are not completely forfeited to the employer, under the "use it or lose it" rule. Under the original terms of the Affordable Care Act, a plan could permit an employee to carry over $500 into the following year without risking losing the funds.
What products can I spend my FSA account funds on?
Conveniently, many online stores have an “FSA” approval stamp on products that are eligible for FSA. Check out some of the products below that are listed on Amazon.com as FSA eligible:
Shop the FSA Store!
See a list of eligible product categories.
The following are all eligible products!
See a list of eligible product categories
More tax information can be found in
- J.K. Lasser's Your Income Tax 2015: For Preparing Your 2014 Tax Return Lower Your Taxes - BIG TIME! 2015 Edition: Wealth Building, Tax Reduction Secrets from an IRS Insider
- J.K. Lasser's 1001 Deductions and Tax Breaks 2015: Your Complete Guide to Everything Deductible
- Taxes For Dummies
File Your Taxes with:
- TurboTax Deluxe 2014 Fed + State + Fed Efile Tax Software + Refund Bonus Offer
- H&R Block Tax Software Deluxe + State 2014 Win [Download]