By
DEBORAH STAYMAN
Your window of opportunity for saving money on your 2010 income taxes opens
September 21, and closes November 16.
That’s the open-enrollment period for flexible spending accounts that allow you
to set aside pre-tax earnings to reimburse yourself for health and/or dependent
care expenses in 2010. Enrollment is voluntary and no one is enrolled
automatically. So, even if you enrolled last year for 2009, you must enroll
again now if you want to participate in 2010.
The Flex Spending Account (FSA) is a program PEF and the state negotiated to
help members save money on their taxes. The FSA has two benefits, the Health
Care Spending Account (HCSAccount) and the Dependent Care Advantage Account (DCAAccount).
Enrollment in the DCAAccount has the added advantage that the state has agreed
in the PS&T contract to contribute $300 to $800 to this account for you in 2010,
depending on your state salary.
How much you could save on your 2010 income taxes depends on your annual income,
the number of dependents you claim on your taxes, and the amount of money you
contribute through payroll deductions to your HCSAccount and/or DCAAccount.
You may not use money from your Flex Spending accounts to pay directly for
eligible expenses. You must pay the expenses first and then submit claims for
reimbursement from your HCSAccount or DCAAccount.
It’s very important to estimate your eligible 2010 expenses carefully, because
you will lose any money left over in these accounts after your 2010 expenses are
reimbursed.
HCSAccount
If eligible, you may contribute any amount from $100 to $4,000 annually in
pre-tax dollars to a HCSAccount to reimburse yourself for out-of-pocket medical,
dental, vision, or hearing costs not reimbursed by health insurance.
Some examples of allowable costs are prescription drug copayments, dental
implants, and orthodontia fees paid to non-participating providers, deductibles,
laser eye surgery and contact lenses. Reimbursement for certain over-the-counter
drugs and supplies is also available. A list of these eligible items is online
at
www.flexspend.state.ny.us.
DCAAccount
If you pay a caregiver to care for your child, elderly parent, or disabled
spouse while you work, you can set aside up to $5,000 in pre-tax salary through
payroll deduction to reimburse yourself for these expenses.
Examples of expenses eligible for DCAAccount reimbursement include child care
expenses (up to age 13), summer day camp, before/after school programs, adult
day care, home aide, and housekeeper or cook (these last two must provide
custodial care to be considered eligible expenses).
The employer contribution for 2010 is:
• $800 if your state salary is up to $30,000;
• $700 if your state salary is $30,001 to 40,000;
• $600 if your state salary is $40,001 to 50,000;
• $500 if your state salary is $50,001 to 60,000;
• $400 if your state salary is $60,001 to 70,000; and
• $300 if your state salary is $70,001 or more.
Enrollment
To enroll in either the HCSAccount or the DCAAccount, begin by estimating your
annual out-of-pocket costs, and then decide how much money to have withheld from
your paycheck. Estimate conservatively because, if you don’t file 2010 expense
claims for reimbursement of the entire amount, you will lose any remaining
funds.
You can enroll in either or both programs online at
www.flexspend.state.ny.us. There
are no paper forms to mail in. You can also enroll by calling (800) 358-7202 and
a customer service representative will take your application. You may e-mail any
additional questions to
fsa@goer.state.ny.us.
Claims
You have three ways – online, fax or mail – to submit claims for
eligible 2010 expenses if you enroll.
Submit reimbursement requests online for both the HCSAccount and the DCAAccount
through
www.myFBMC.com. Upload scanned
images of completed claim forms along with scans of supporting documents.
Submitting reimbursement requests online is fast, easy and secure, and will help
you receive your reimbursements sooner. Or mail or fax claims for your eligible
2010 expenses, and receive reimbursement by check or direct deposit.
