Lower Your Taxes

The Health Care Flexible Spending Account [LINKS DEEPER IN PAGE TO HCFSA SECTION](HCFSA), Limited Purpose Flexible Spending Account [LINKS DEEPER IN PAGE TO LPFSA SECTION] (LPFSA) and the Dependent Day Care Flexible Spending Account [LINKS DEEPER IN PAGE TO DCFSA SECTION](DCFSA) allow you to set aside money on a tax-free basis to pay health care and dependent day care expenses.

By paying these expenses through an FSA, you lower your federal income and Social Security taxes. You get the full buying power of every dollar you spend for these expenses because taxes are not deducted from your contributions to the accounts.

PayFlex administers the FSAs. You can find much more information by going to HealthHub, PayFlex's website, from the Benefits page of Jetnet.

Also keep in mind:
  • Eligible expenses must be incurred between January 1 and March 15 of the following calendar year.
  • The amount you choose to contribute will be deducted from your paycheck and added to your FSA in equal amounts during the year.
  • You forfeit any unused funds, so estimate your expenses carefully!
How the Health Care Flexible Spending Account (HCFSA) Works

You may be interested in the HCFSA if you:
  • Are enrolled in the Standard, Out-of-Area or Value Option and:
    • Expect to have expenses in excess of any Healthmatters Rewards you earn in the health spending account associated with your medical option (your HRA or HIA).
    • Expect out-of-pocket dental or vision expenses, which are not eligible expenses under your HRA or HIA.
  • Are not enrolled in an American Airlines medical option and want to use the FSA to save on health care expenses.
Use the HCFSA to reimburse eligible health care expenses for you and any dependents you claim on your federal tax return, including deductibles, co-insurance and co-pays. It can also be used to reimburse eligible prescription drug, dental and vision expenses, as well as expenses for certain over-the-counter items.

For 2013, you may contribute up to $2,500 to your HCFSA. The full amount you elect to contribute throughout the year is available to you when the plan year begins on January 1.

How the Limited Purpose Flexible Spending Account (LPFSA) Works

You may be interested in the LPFSA if you:
  • Are enrolled in the Core Option and expect to have eligible expenses for dental, vision and certain over-the-counter items in excess of any funds you have in the Health Savings Account.
  • Want to minimize use of your HSA funds to save them for future expenses.
You cannot use your LPFSA for medical or prescription drug expenses.

For 2013, you may contribute up to $2,500 to your LPFSA. The full amount you elect to contribute throughout the year is available to you when the plan year begins on January 1.

How the Dependent Day Care Flexible Spending Account (DCFSA) Works

You may be interested in the DCFSA if you:
  • Pay for the care of an eligible dependent child or adult so you and your spouse or domestic partner can work.
Eligible dependents must be under age 13 or disabled for their expenses to qualify. HealthHub has all the details about eligible dependents and eligible expenses.

For 2013, you may contribute up to $5,000 to your DCFSA. In some cases—for example, if you are married but file your income taxes separately, or if your spouse or domestic partner is disabled or in school—your contributions to the DCFSA may be limited to less than $5,000. Check your Benefits Guide [LINKS TO JETNET]  need url for this link!!!! to see if these limitations affect you.

The amount available at any time for reimbursement of eligible expenses is limited to the amount you have contributed.

DFSA or Federal Income Tax Credit?

For some people, the federal income tax credit may save more money in taxes than the DCFSA. If you use the tax credit, you take a credit on your federal income tax return (instead of reducing your current taxes through the FSA).

You should consult your tax advisor to determine whether to contribute to the DCFSA or take the federal income tax credit. You cannot do both.