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PDF Editor FAQ

Why does America have flexible spending accounts (FSAs) instead of simply making the first $5,000 of dependent care and $2,500 of health care spending tax deductible?

I have also wondered about this idiotic process by which those who are good medical expense predictors are rewarded and those who are not are penalized. I think the reason is to discourage fraud, which would be much more tempting if you didn't have to create a special account and risk losing money unspent for medical purposes.

What is a dependent care reimbursement account?

If you are asking about the Flexible Spending Account (FSA) for dependent care, vs the FSA for medical expenses, then this means an account where you can deduct money PRE-TAX from your paycheck and deposit it into this account.that money can then be withdrawn TAX-FREE to reimburse the cost of childcare - daycare, preschool nanny etc.the annual limit is $5,000. not typically offered by smaller companies due to the way the plan must be set up (a shame - similar to the small business health insurance tax deduction situation - another way small business people pay more taxes than the typical corporate drone - sorry but true).This is an excellent tax break - it won’t usually come anywhere near to what you spend on childcare but it helps.Here’s more from Wikipedia: Flexible spending account - WikipediaHope this helps!ChrisWho's Chris?

Are baby bottles FSA eligible?

Baby bottles reimbursement is not eligible with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

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