You can contribute up to $2,550* for expenses with pre-tax dollars, which will reduce the amount of your taxable income and increase your take-home pay. Examples of reimbursable expenses include co-pays, deductibles and prescription medications. For your convenience, BRHS offers a debit card that allows you to pay for eligible expenses at the point of service, whereby the funds are automatically deducted out of your FSA. At the beginning of your benefits plan year, you will decide how much money to contribute to your FSA and the entire annual amount is credited to your debit card for you to purchase qualified medical expenses not covered by your insurance/benefits plan.
The Dependent Care FSA sets aside pre-tax funds. Similarly, a dependent care assistance program (DCAP) allows employees to pay for dependent day care expenses through pre-tax salary reductions. Employees should determine whether participating in a DCAP or claiming the dependent care tax credit will be more advantageous. With the Dependent Care FSA you are allowed to set aside up to $5,000* to pay for child or elder care expenses on a pre-tax basis. Eligible dependents include children under the age of 13 and dependents of any age that are incapable of caring for themselves. Dependent care expenses are reimbursable as long as the provider is not anyone considered your dependent for income tax purposes. In order to be reimbursed, you must provide the tax identification number or Social Security number of the party providing care.
*FSA Contribution Limits subject to change per IRS regulations.
Check out these helpful resources on understanding caregiver burnout, how to ask for caregiver support, and taking breaks to get the self-care you need.
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