{ 4 trackbacks }

* Back From Family Road Trip Vacation
June 22, 2009 at 10:47 pm
How FSA Plan Account Contributions Can Save You Thousands
June 23, 2009 at 12:14 pm
Money Hacks Carnival, Staying Cool Edition | The Personal Finance Playbook
July 8, 2009 at 8:44 am
Flexible Spending Account Changes on the Way
June 22, 2010 at 9:30 am

{ 8 comments… read them below or add one }

1 Tim November 17, 2009 at 12:17 am

If two spouses have FSA’s at their respective places of employment, can they submit expenses to each other’s account? For example, if they both set aside $4,000, can they submit expenses that total $8,000 but are distributed as $6,000 for one spouse and $2,000 for the other.


2 rob November 17, 2009 at 9:40 pm

You state “I rely on cash-back credit cards for as many expenses as I can and NEVER carry a balance (that’s the catch!). But, by doing so, we get back hundreds of dollars per year in tax-free income for doing nothing but carrying less cash around and exercising discipline. ” I thought the cash from cash-back cards WAS taxable as opposed to airline miles cards .


3 Darwin November 17, 2009 at 11:34 pm

Hi Tim and Rob,
If you’re unsure I’d double check with your tax professional. My unqualified interpretation of current regs = my opinion, is that for

-Tim, the FSA treatment should be fungible; i.e. whatever the family spends on eligible expenses should be deductible equivalent to the aggregate limit of both spouses as long as they’re filing jointly.

-Rob, I’ve never found an IRS rule that actually references cash back rewards and there are some supporting logical conclusions, but I may be wrong. When you sign up for a card, you’re not asked to complete any sort of IRS form or receive a 1099 or Form-MISC or whatever at the end of the year, which I do for all other forms of income, including affiliate payments for my blogs. There is no year-end statement highlighting what the annual cash back payment was; I’d think if it were taxable, the IRS would need something to audit like an annual statement. My personal opinion is that I don’t view this as “income” but rather a rebate which is not taxable. Like I said, the IRS is clear as mud on this and I’ve never heard of anyone actually paying taxes on rewards, but for the heck of it, this year around I’ll probably just bounce it off my accountant.


4 bob November 30, 2009 at 7:06 pm

If I have unusual medical expenses in 2009, and I received the bill in December, can I pay it in January, and count it as a 2010 expense?

The procedure was in November 2009. Prior to the procedure, I had already spent the amount that I had contributed to my FSA. So I’d like to make it a 2010 expense.


5 Darwin November 30, 2009 at 11:47 pm

Hmm. good question I’ve considered myself. I’d probably check with your accountant, not quite sure.


6 BadBoysDriveAudi December 28, 2009 at 6:04 pm

Just a thought on the eligible/excluded items lists: you list “insurance premiums” and “weight-loss program” under both, which makes things slightly confusing.


7 Casey January 5, 2010 at 11:01 pm

I was unemployed and incurred an eligible FSA expense in Feb. 09… I started with a my new job in March 09 and opened and set up contributions to my FSA … Can I get reimbursed for my Feb. expense?


8 jeffrey brotherton April 30, 2016 at 5:53 pm

Good piece ! Incidentally if people want a IRS 8606 , my colleagues encountered a blank version here https://goo.gl/OGi3D5.


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