A list of qualifying and non-qualifying expenses for both the Health Care and Dependent Care FSA can be found on ASIFlex’s website.
If you are enrolled in the HSAO for your medical plan, you may enroll in the Limited Health Care FSA and the Dependent Care FSA.
The Limited Health Care FSA is for employees enrolled in the Health Savings Account Option (HSAO). It can be used to pay for qualified dental, vision, and out-of-network preventive care expenses only. Preventive care includes periodic health evaluations (including tests and diagnostic procedures ordered in connection with routine exams), routine prenatal and well-child care, immunizations, tobacco cessation programs, obesity weight-loss programs, certain screening services, and prescriptions that are preventive in nature. Medical expenses other than preventive care are not eligible for reimbursement with the Limited Health Care FSA. Please contact the Arizona Department of Administration at (800) 304-3687 for more detail on what services are defined as preventive.
Use ASIFlex’s tax calculator to estimate your tax savings from enrolling in an FSA.
For 2016, the Health-Care FSA individual maximum is $2,550.
The Dependent-Care FSA maximum is $5,000 per family, per plan year ($2,500 if married filing separate federal income tax returns).
Your dependent-care expenses must be for the care of one or more qualifying persons. A qualifying person is:
You must choose whether to use the Child Care Credit or the Dependent-Care FSA. The IRS will not allow you to receive two tax breaks on the same expenses.
You may claim a child care credit on your tax return equal to your dependent-care expenses (up to $6,000 per year for two or more dependents or $3,000 per year for one dependent) multiplied by a percentage. The percentage decreases from a high of 35% to a low of 20% as your household adjusted gross income increases.
The Dependent-Care FSA is limited to $5,000 per year (for you and your spouse together), $2,500 if married filing separately, for any number of dependents. You will experience "tax savings" throughout the year with every paycheck you receive. If you are subject to the lowest federal tax rate, state taxes, and Social Security taxes you will save around 27% of expenses through the Dependent-Care FSA. If you pay a higher federal rate, you will receive an even higher tax break through the Dependent Care FSA.
Generally, those employees with a combined income of more than $30,000 or who spend more than $3,000 on care for only one qualifying child will save more through the Dependent Care FSA. Please contact your tax advisor if you have questions about which is best for you.
Claims incurred during a calendar year must be submitted by April 30 of the following year (e.g., 2015 expenses must be submitted by April 30, 2016).
The debit card is an option available to anyone who enrolls in the Health-Care FSA. It is not available with the Limited Health Care FSA or the Dependent Care FSA.
Note that there is no longer any fee associated with the debit card.
ASIFlex will send debit card enrollment forms to your home address. If you wish to elect the debit card, complete enrollment forms and return them to ASIFlex. It will take approximately two weeks to receive your debit card once ASIFlex has received your application.
No, the debit card is optional. If you opt not to use it, you can submit claim forms and documentation to ASIFlex for reimbursement.
You can use the debit card to pay for qualified expenses at certain grocery stores and pharmacies or at doctors’ offices. The expenses will be debited from your Health Care FSA election.
You may still need to submit follow-up documentation to ASIFlex. Most co-pays and over-the-counter purchases can be electronically substantiated and will not require follow-up documentation. Other purchases and out-of-pocket expenses will require follow-up documentation. ASIFlex will send a request to your home address if follow-up documentation is required. You should always keep your documentation even if ASIFlex does not request it.
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