Page 12 - 2020 HEICO Enrollment
P. 12
DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
Discovery Benefits Potential Tax Savings Illustration
The Dependent Care Flexible With Dependent Without Dependent
Care FSA
Care FSA
Spending Account (DCFSA) is a pre- Annual Earnings $35,000 $35,000
tax account for elder care and child Tax-Free Dependent Care FSA Election -$1,000 $0
care expenses. The services must be Total $34,000 $35,000
necessary to allow you—or, if you Estimated Taxes Owed -$7,701 -$7,928
are married, you and your spouse—to Total $26,299 $27,072
work or attend school full-time. After-Tax Dependent Care FSA $0 -$1,000
Expenses
Eligible dependents include: Spendable Income $26,299 $26,072
Children under the age of 13 Potential Savings $227 $0
Dependents of any age incapable
of caring for themselves because Examples of eligible expenses under this program include:
of a mental or physical handicap Day care
By law, the maximum amount that Before and after school programs
you may contribute to any Dependent Care for a dependent adult (elder care)
Care FSA for your family is $5,000,
or $2,500 if you are married and Nanny, nursery school, or pre-school expenses
ile separate tax returns. The Summer day camp
plan contains a “use it or lose it” The list below includes common fees that are not eligible under this
provision—so plan carefully! After program:
the end of plan year, you will have an
additional 90 days to submit expenses Diaper changing fees
that occurred during the plan year. Entertainment
You will also have until March 15th to
spend any unused funds that you did Fees for lessons (i.e. dance, piano, swim, etc.)
not use in the designated plan year. Late fees
Dependent Care FSA’s are Additional information can be found on the IRS website.
reimbursable as long as the provider
is not anyone considered your
dependent for tax purposes. To
be reimbursed when submitting
receipts, you must provide the tax
identiication number of the party
providing care.
12
Discovery Benefits Potential Tax Savings Illustration
The Dependent Care Flexible With Dependent Without Dependent
Care FSA
Care FSA
Spending Account (DCFSA) is a pre- Annual Earnings $35,000 $35,000
tax account for elder care and child Tax-Free Dependent Care FSA Election -$1,000 $0
care expenses. The services must be Total $34,000 $35,000
necessary to allow you—or, if you Estimated Taxes Owed -$7,701 -$7,928
are married, you and your spouse—to Total $26,299 $27,072
work or attend school full-time. After-Tax Dependent Care FSA $0 -$1,000
Expenses
Eligible dependents include: Spendable Income $26,299 $26,072
Children under the age of 13 Potential Savings $227 $0
Dependents of any age incapable
of caring for themselves because Examples of eligible expenses under this program include:
of a mental or physical handicap Day care
By law, the maximum amount that Before and after school programs
you may contribute to any Dependent Care for a dependent adult (elder care)
Care FSA for your family is $5,000,
or $2,500 if you are married and Nanny, nursery school, or pre-school expenses
ile separate tax returns. The Summer day camp
plan contains a “use it or lose it” The list below includes common fees that are not eligible under this
provision—so plan carefully! After program:
the end of plan year, you will have an
additional 90 days to submit expenses Diaper changing fees
that occurred during the plan year. Entertainment
You will also have until March 15th to
spend any unused funds that you did Fees for lessons (i.e. dance, piano, swim, etc.)
not use in the designated plan year. Late fees
Dependent Care FSA’s are Additional information can be found on the IRS website.
reimbursable as long as the provider
is not anyone considered your
dependent for tax purposes. To
be reimbursed when submitting
receipts, you must provide the tax
identiication number of the party
providing care.
12
