Spending Accounts Overview

The ACS benefits program features a method you can use to reduce your taxes, and help you with your budgeting plans-the Health Care and Dependent Care Spending Accounts.

Spending accounts are individual accounts that reimburse you for eligible health and dependent care expenses. Normally you would pay these expenses out of your take-home pay after taxes are deducted. With these accounts, however, you can reduce the amount of taxes you pay. Specifically, the:

  • -  Health Care Spending Account (HCSA) helps you pay for eligible health care expenses you incur on behalf of yourself or your eligible dependents (as defined by the IRS). If you participate in the Consumer Choice Plan, you may use the Limited Use Health Care Spending Account only for eligible dental, vision and over-the-counter drug expenses relating to dental, vision or preventive care only. You should use your Health Savings Account (HSA) for all eligible medical expenses.
  • -  Dependent Care Spending Account (DCSA) helps you pay for the child or elder day care expenses you incur on behalf of an eligible dependent (as defined by the IRS) in order for you (or you and your spouse) to work or look for work.

Note: Because the IRS generally does not consider domestic partners to be eligible dependents, expenses you incur on behalf of a domestic partner and/or a domestic partner’s child(ren) are not eligible expenses for the purposes of the spending accounts unless they are considered a dependent for income tax purposes. Therefore, any references to dependents (spouse or children) made in this section do not apply to domestic partners or their child(ren).

 

You are eligible to participate in these accounts if you are eligible to participate in the ACS benefits program.

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Questions about your employee benefits or other Human Resources issues? Contact the Workplace Solutions Center at (888) 471-2271.