Are FSA's really worth the trouble? (tax related)

Taytee · October 2009

I've tried for 6 months to resolve a charge from my OB that I put on my FSA card. Why they have so much trouble with Oakwood Women's I have no idea but they've challenged every. single. charge. Product charges like CVS I could understand but a legitimate medical practice? WHY!? My card has been locked for months and I still have $300 to spend. My only choice at this point is to submit receipts. I have enough to cover the rest of the balance from when I couldn't use the card but it's kind of a PITA since our scanner won't work with my computer and DH is lame-o about getting that kind of stuff done for me. Don't even get me started about getting the Daycare FSA papers scanned and submitted.

I read online that it's supposed to save about 25 cents on the dollar. Last years taxes were so jacked from my IRA deduction it was hard to tell (we are still paying on our 2008 taxes). Does it really make that big of a difference? We put $5,000 to Daycare and $1,000 to Healthcare.

smb29 · October 2009

I think its more like 15 cents on the dollar, but even at 15 cents, that is almost $1000 for the $6000 you put away. Is $1000 worth the time it takes you to submit the receipts? It is for me, but you have to make that call for yourself. I don't bother with the credit card and just fax in my receipts every so often and I've never had anything rejected.

ebat · October 2009

Yes they are worth it, they're a total PITA though. I've gotten challenged for every single charge I've made since becoming PG, seriously they can't figure out that a charge from Labcorp is covered, and most of the time they don't challenge me until 2 months later.

But yes that 25% is true, and unless you're willing to run tax numbers with and without it, it'll be hard to tell exactly how much you're saving. But it looks like it saves you $1250 a year, I think that's worth the hassle

Taytee · October 2009

OK, I agree, probably worth it. Totally irritating though!

Mainer-in-Texas · October 2009

Definitely worth it. I think they challenge everything that isn't a standard copay. The amount you save depends on your tax bracket.

PMBridetobe · October 2009

DH has the CC and I love it except when I go to the dentist. It is a DDS on the receipt and they still challenge it. Every.single.time. There is supposeduly some certification thing that they can get so that they are automatically except. I dunno. i like the tax break on my pay. It is worth it to fax in a receipt every now and again.