Dependant care FSA

[Chaoster]

I really screwd up this time. My company does not mail out any info for FSA and Health insurance when its open season time. Management does not do a very good job of keeping us informed on things. But I guess I take blame for part or all of it. I should have checked before putting a large sum of money into FSA for dependant care on the advice of others. I sent my son to summer day camp and when I sent in to clain my money I was told it does not qualify because he is 13. Apparently dependant care fsa only covers children under 13. So I think I am really screwed. I had a coworker last year who was unaware his insurance premium was going up. He ended up paying over $400 per paycheck for insurance. That's $800 a month. I was wondering has anyone had a situation like this. Is there a way I could get my money back or just look at it as a very expensive lesson learned.

 

[HollenAngi]

I work in HR and unfortunately I don't see a way for you to get your money back unless you have another child you can use it on. When you signed up you should have been given a packet explaining the program.

 

[disneychrista]

Apparently dependant care fsa only covers children under 13.

Sorry no help on the FSA but this is also true of the tax deduction for dependent care.

 

[aprilchem]

Yes, as far as I know if you don't use it for an allowable expense you do not get it back.

 

[Sadie22]

The same principles apply for a medical flexible spending account that you need to figure out how much you will definitely spend before committing to how much will be placed in the account. Any amount not spent is forfeited,

 

[HM]

Oh my gosh, that's awful.
I'm so sorry.
I knew that my kids would only be covered up until age 12 because I've read the packets since they were babies....

 

[tvguy]

I got caught on this too and lost several hundred dollars. Wish I had just skipped the FSA and taken the straight deduction instead.

 

[adudeinblue]

I'm not qualified for a FSA because I selected a high deductible PPO with a HSA. But can't you use your allocation of FSA on other medical expenses? Time to get the family those medical/dental/vision care?

 

[Sadie22]

A medical flexible spending account and a dependent care flexible spending account are two separate things. Money cannot be transferred from one to the other.

 

[calleger]

I'm not qualified for a FSA because I selected a high deductible PPO with a HSA. But can't you use your allocation of FSA on other medical expenses? Time to get the family those medical/dental/vision care?

My company use to use FSA , now HSA, and no. When you set aside the amounts for FSA you declare your amounts for FSA and for Dependent FSA. Dependent FSA is not what it sounds like. Its intended for childcare of dependent children and not healthcare.

 

[TXTransplant]

I use the dependent care FSA, too, and as far as I know there is no way to get your money back. However, the way the program works, they deduct the money from every paycheck. So, whatever total amount you committed is being deducted from your paycheck every two weeks or monthly or whenever you get paid. For example, I contribute $3000 a year, but this is deducted from my paycheck in increments of $125 every two weeks. To date, I've only contributed $1875 to the account and still owe another $1125 between now and December.

You probably won't be able to get what's already been deducted back, but you should at least ask HR if they can stop all future deductions. Did your son turn 13 this year? If so, that might qualify as an "event" that allows you to stop participating. It's worth it to at least ask and maybe recover some of your money.

 

[Chaoster]

Yes he turned 13 this year. Actually a week before camp started. I'm trying everything and calling everywhere I can think of.

 

[justintime]

Sorry no help on the FSA but this is also true of the tax deduction for dependent care.

How does this work on your taxes when your child turns 13 partway through the year? I can submit dependent care expenses up until my son turns 13. When it comes time to do my taxes next spring, can I claim the tax deduction for the dependent care expenses up until he turned 13? Or can you not claim the tax deduction for any of the year that they turn 13. My son turns 13 in September, so I have a whole summers worth of summer camp expenses to claim on the FSA, but wasn't sure how this would be handled tax time.

 

[disneychrista]

How does this work on your taxes when your child turns 13 partway through the year? I can submit dependent care expenses up until my son turns 13. When it comes time to do my taxes next spring, can I claim the tax deduction for the dependent care expenses up until he turned 13? Or can you not claim the tax deduction for any of the year that they turn 13. My son turns 13 in September, so I have a whole summers worth of summer camp expenses to claim on the FSA, but wasn't sure how this would be handled tax time.

Per the IRS.gov website:

A qualifying person is your dependent child age 12 or younger when the care was provided....You must identify each qualifying person on your tax return.

 

[disneyfab]

Did your son attend any after school programs in the spring before his 13th birthday that qualify?

 

[Chaoster]

Did your son attend any after school programs in the spring before his 13th birthday that qualify?

unfortunately no.

 

[GaryDis]

Tuck this away for tax time: Your employer will still report the amount deducted for the FSA on your W-2. In order to avoid being taxed on it, you will need to report this amount as forfeited on Form 2441 (line 14 on the 2014 version; I haven't seen the 2015 versions yet). Many tax pros aren't aware of this because it's such an uncommon situation.

 

[lanejudy]

I'm not qualified for a FSA because I selected a high deductible PPO with a HSA.

You should be able to do a "Limited Healthcare FSA" -- it is limited to healthcare/vision/dental expenses that do not count towards your HSA plan's deductible. We use ours for glasses, dental, and co-insurance that kicks in after we meet the high deductible. But of course if you are putting enough into your HSA to cover all that stuff, it's probably a better option for you than a Limited FSA. Our OOP max is more than the HSA limit, so I use both.


OP - Is there anything your son did earlier in the year before turning 13 that could qualify? Maybe during school vacation weeks? Summer day camps aren't cheap so I feel your pain if you lose those funds.

 

[Chaoster]

Tuck this away for tax time: Your employer will still report the amount deducted for the FSA on your W-2. In order to avoid being taxed on it, you will need to report this amount as forfeited on Form 2441 (line 14 on the 2014 version; I haven't seen the 2015 versions yet). Many tax pros aren't aware of this because it's such an uncommon situation.

Thanks for the tip.

 

[Chaoster]

OP - Is there anything your son did earlier in the year before turning 13 that could qualify? Maybe during school vacation weeks? Summer day camps aren't cheap so I feel your pain if you lose those funds.

No Everything was done at school, during the school year.