Did you know? Over $400 million of earned money is forfeited each year when employees forget about their FSA account or just miss the spending deadline. (source) Don’t let this happen to you! If you still have money left in your flexible spending account, you can use it for hearing aids before the deadline. We can help show you how.
What is a Flexible Spending Account?
Wikipedia explains a flexible spending account, or FSA is “one of a number of tax-advantaged financial accounts, resulting in payroll tax savings.” As an employee, you set up an arrangement with your employer to put some money from each paycheck away in an account tax free. This money can only be used for approved medical purchases that are not covered through their health insurance. There are a number of different types of expenses you are allowed to use your FSA money for including insurance premiums, deductibles, and many other things including hearing aids. The IRS outlines just how much money you can save. Putting money away in a FSA is only a good deal if you spend it all because it is a “use it or lose it” situation. However, there isn’t a strict cut off for most flexible spending accounts, you can ask for an extension for 2 ½ months or defer up to $500 over to the next calendar year.
You should check with your employer and /or your tax professional for advice on exactly what is best for you concerning your FSA. The IRS just published a news release explaining the details and changes for flexible spending accounts in 2019. In 2018, the maximum contribution allowed by an employee was $2,650 and in 2019, that amount increased to $2,700. In 2018, if you contributed the full amount and were in the 30% tax bracket (for example) you could save $795 in tax savings.
We are here to help you hear!
At Audiology Clinic we are dedicated to you and your hearing health. Have questions about hearing loss, hearing aids, or your listening options? Contact us today and schedule an appointment at our Vancouver, Washington hearing center.