The IRS Deductions Blog

Posts Tagged ‘fsa’

Question: Is childcare FSA tax deductible even if you are over the income cap?

Answer: Yes it is. Just have the director fill out all of the forms and give you a statement. Here you can claim up to $5000 a year.

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INDEMNITIES FROM THE COMPANY

Section 232 of the Companies Act (CA) 2006 allows companies 3 to protect directors by indemnifying 4 them in respect of actions brought by third parties, 5 covering both legal costs and the financial cost of any adverse judgment in a civil action even where the directors are found to have committed a breach (in the absence of any morally culpable behaviour such as dishonesty).

Health Savings Accounts

Question: Electing a high deductible med plan/HSA compatible.. can we discontinue the FSA?

Would this be a qualifying event? Our employees want to cancel the FSA since they can now get a HSA account. Our rep has not gotten back to me and I need an answer asap. Any help is appreciated.

Also, is this a IRS decision or can the Flex spending company decide what they want?
thanks for your answer but they dont want to keep it so I am seeing if we can discontinue it.

Answer: No, it is not a qualifying event. Further, if they have a FSA, they are not eligible to open a Health Savings Account. This means, if they elect the HDHP, and they are already enrolled in a FSA that is not defined as a “limited use” FSA, they will have to pay their out of pocket expenses from the FSA, and open a Health Savings Account in 2010. The FSA plan document would need to specifically state that is for post-Deductible Expenses, and othe QME not covered by the Group Health Insurance plan.

Regualtions are from the IRS, not the plan administrator.

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Kopyc: Health Savings Accounts offer you tax breaks and more

Why do people open up Health Savings Accounts in tandem with high-deductible insurance plans? Well, here are some of the compelling reasons why younger, healthier employees decide to have HSAs.

Health Savings Accounts

Your health must be the first priority over your finances — however as it does, the results could at times be devastating. According to the study of Harvard University, medical bills reasoned completely half of all bankruptcy filings. Moreover all three-quarters of those bankruptcy filers had medical insurance, in any case as they first got sick. Thanks to the high charges of insurance, laws which permits insurers to drop the sick and the incapable of number of critically ill citizens to ongoing their health insurance throughout work, the study confirm that as many as 1.5 -2 million Americans can declare medical bankruptcy each year just for the reason of a serious illness.

Medical debt is similar to unsecured debt that means there is no guarantee available for the creditors to take back. However without filing medical bankruptcy or other safety, medical debt could be tied to the collateral you do own. After some years of due bills of hospital or insurance company could be able to garnish your earnings and claim part of your equity in a home, business or additional costly assets.

If you’re feeling overwhelmed because of medical debt, in that case bankruptcy lawyer could help you. If you recognize that is not possible for you to pay off your medical bills, but have to keep considering the same doctors, an experienced bankruptcy attorney could help you in setting up your finances. Moreover in prioritize expenses to make sure that you could see the doctors you require to and file a Chapter 7 bankruptcy down the line. In case you’re debt are onetime expenses then an attorney could help you in negotiating with your provider for setting up a more sensible payment plan. And a bankruptcy law attorney can also shield you from irritating creditors as you’re undergoing treatments, permitting you to concentrate on what matters mainly getting better.

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December 29, 2009

Insurers constantly caution seniors that their Medicare Advantage perks such as hearing aids, dental payments and even gym memberships will fizzle if Democrats get their way and cut government subsidies for them.

MeltDown #489 EMERGENCY ECONOMIC STABILIZATION

Question: Is Dr. Bernstein Health & Diet Clinic services in Canada a Tax Deductible Medical expense?

for my Revenue Canada 2008 Income tax form as a medical expense?
These are solely Vitamin B12 and B6 injections.
I know Jenny Craig, L.A. Weight Loss, Weight Watchers etc., are Not Tax Deductible BUT Dr. Bernstein is a real doctor and have real nurses that administer clinical injections that some Insurance companies will actually cover. So I don’t think that Dr. Bernstein is in their category. Also, canada revenue medical guideslines state that you can claim services from nutriuentist. Show what do you think?
I know Jenny Craig, L.A. Weight Loss, Weight Watchers etc., are not tax deductible BUT Dr. Bernstein is a real doctor and have real nurses that administer clinical injections that some Insurance companies will actually cover. So I don’t think that Dr. Bernstein is in their category. Also, Canada Revenue medical guidelines state that you can claim services from nutritionist. So are there any more comments?

Answer: If the treatment is prescribed by a licensed doctor, they should qualify.

Medical expenses are deductible only as they exceed 3% of your income.

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Standard or itemized tax deduction?

Tax Deductions reduce your taxable income, so choose the one that gives you the smallest tax bill.

Paulette Garin at 2009 Democratic State Convention

Question: Am I better off paying off a student loan or put the $ in a savings acount.?

I would get 4% dividend in the savings account and my interest on my student loan is 8.5% with about a 3800 balance. The Interest from the student loan is tax deductible!

Answer: You are better off paying off your student loan. You end up paying more in interest on the loan then you would earn in your savings account. Using the numbers you provided you could earn about $155 in interest if you put the money in your savings account, but you would end up paying $165 in interest on the loan.

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Crossroads House is seeking funds to support its mission

Editor’s note: Officials of Crossroads House of Watertown have prepared the following article in an effort to focus its need for additional financial support for its mission.

Find out about a tax free savings account for education!