Falconjet

I got the spending card this year for the first time because I had two kids who were going to get braces and I would easily spend $3K. Good deal for taxes and you get free interest on the 3K because you can spend it immediately and pay for it over the course of the year.

That is the good news. The bad news is that even though we only used the card for OBVIOUS medical treatments and services, from doctors offices and dentists, we still had to send in copies of reciepts throughout the year to justify the expenses. Even doing that, they canceled the card for a couple of months after they said they didn't get the faxes that my wife sent in. Huge pain in the arse to manage that account.

This year I decided against the card because I don't think I'll spend that much this year and even if we do at least we won't have to go through the hassle of dealing with the Wageworks people to justify every dime we spent.

Too bad because it could (and should) be a tremendous benefit.

FJ

MaydayMark

Yes ... they have asked for receipts for every transaction the past 6-9 months. Even the FedEx mail-order drugs. Huge pain in the a**.

CargoCan

You do not need to sign up for dependent care for it to be deductible. You can wait until the end of the year and deduct the expenses when you file your taxes. I only point this out because it is different than the health savings account.

With the health savings account you must sign up in advance unless your expenses are so great that you meet the threshold (7% but don't quote me, ha, ha yeah right).

With dependent care, as long as the expense qualifies you can claim it at the end of the year. This way you do not lose what you don't use.

I'm not a tax professional, but I did stay in a best western last night.

990Convair

Yep, they can and do. I put $2,000 in there and have to turn in 4 receipts. The problem is, they won't shut your card off till you get to 1/2 of the balance in the account. So, I didn't know I had to turn in receipts for 7 months ago until we bought $500 in eyewear and drew down the balance. So now I am calling my wife's OBGYN's office for a receipt for $22.00. Although there are 5 other "approved and uncontested" charges from this very OBGYN, they want this receipt.

I called and pitched a fit, but the girl said...and I quote...."there are personal things that people pay for and we need to verify the purchase". I reminded her that this was my wife's OBGYN, and also $22. I said what can you buy for $22 from an OBGYN? She said there "are elective cosmetic surgeries people buy". It was then that I knew I was dealing with a girl that had the mental aptitude of a soap dish....sure, she had "hoohah-lift" for $22. RRRRIIIIGGGHHT!

fedupbusdriver

Was her Hoohah sagging so bad that it needed lifting?

Jetjok

We don't use the HCSA plan, but we do have secondary insurance which ends up picking up all our co-pays for prescription drugs. The pharmacy we use is a CVS and what we do is once a quarter (you could probably do it on a monthly basis, if needed) we call them and ask that they do a computer printout of all our prescription drug purchases for the past period. We then take that printout and send it along to our secondary insurer, who then sends us a check. Perhaps you can work it this way.

JJ

990Convair

Well, apparently that girl thought so....I am so sure! Nothing sagging as far as I know...but I am married, therefore I have not seen for years!

Adlerdriver

I wonder if these variations in policy regarding the HCSA are due to location?
I've used it for the past 2 years for my kid's braces (they auto-paid the monthly charge straight from the account), co-pays to numerous doctors, prescriptions (mail order and local) and have never been asked for a single receipt or even spoken to anyone from their firm. My experience would result in a strong recommendation for using the service. I've got more braces on the way this year so it's going to get used again.
Very strange.

Toccata

I have to say, using it the first time last year, absolutely no problems. The two Optometrist receipts they wanted were approved within a couple of days of being faxed.
Don't know if living in the 'planet' makes a difference.

FDXLAG

It all has to do with who you are paying and are they in compliance with the IRS rules for HCSA. The wellness people realy have no choice in the matter. If the debit is coded correctly they are happy, if not they must verify.