Yes, you can either use a Healthcare FSA or you can deduct healthcare expenses on your income tax return. You can even use a healthcare FSA and claim a healthcare tax deduction in the same year, but only if you don't use both for the same expenses. For any given healthcare expense, you can either:

Speak with your tax advisor to determine the best option for you.

No. Pre-tax contributions toward healthcare coverage are not eligible for reimbursement since they have already received tax-favored treatment. However, healthcare plan deductibles, coinsurance costs, and copayments are eligible.

No. The two accounts are not interchangeable. You can use the money in a Dependent Day Care FSA to pay for eligible Dependent Day Care expenses only, and the money in a Healthcare FSA only for eligible healthcare expenses.

No. The two accounts are not interchangeable. You can use the money in a Healthcare FSA to pay for eligible healthcare expenses only, and money in a Dependent Day Care FSA only for eligible Dependent Day Care expenses.

You can use both, but not for the same expenses.

It depends on your individual situation, and other factors such as your income, your marital and filing status, the amount of eligible expenses you incur, and the number of eligible dependents you have. You may want to check with a tax advisor before making your final decision.

Regardless of what day you started participating, you still have until March 15 to incur healthcare expenses as long as you are covered on the last day of the plan year. So, if you enrolled as a new hire during the middle of the plan year, you can incur expenses up March 15 as long as you were still covered on December 31.

If your coverage ends prior to the end of the plan year, all of your eligible expenses need to be incurred during your actual coverage period.

Any claims you pay out of pocket and file for reimbursement on Pay Me Back claim forms for expenses incurred during that time period will be paid out of your 2007 account first. Once that account balance is exhausted, claims will be paid from your 2008 account.

Be sure to file your 2007 claims before your 2008 claims to get the most out of your 2007 account. If you file your 2008 claims before your 2007 claims, you may exhaust your 2008 account balance with claims you intended for your 2007 account and then have less than you anticipated or nothing left to cover the 2007 claims you were holding.

Once payments are made from your 2008 account, there will be no way of getting those funds paid out of your 2007 account.

Example: You file a claim for $50 incurred on 2/15/2008. Your account from 2007 has a remaining balance of $20 and your account for 2008 has a balance of $1,200 as of January 1. You will receive a payment of $50 ($20 paid out of your 2007 account and $30 paid out of your 2008 account). All future claims will be paid from your 2008 account (provided they are incurred during your 2008 coverage period)

If you re-enroll for a Healthcare FSA for following plan year, you will receive a new Debit Card good for use beginning on the first day of the new plan year (January 1). You will not receive a separate debit card to use between December 31 and March 15 to use up any remaining funds in your previous year FSA balance. You will have to pay for any healthcare expenses you incur during that time and file a Pay Me Back claim form to be reimbursed.

All card payments will be made only from your current year account. Any expenses you pay for using your debit card will be paid out of your current year FSA allocated funds.

Remember: You have until March 15 to incur claims against any unused balance in your previous year Healthcare FSA account, and you have until May 31, (a five full months) to file any claims against the remaining funds in your previous year Healthcare FSA.

You have until May 31 of the following year to file claims against the remaining funds in your Healthcare FSA. Those claims must be for healthcare expenses incurred on or before March 15 of the current year.

For the Dependent Care FSA, claims must be incurred on or before December 31 of the plan year and all claims for reimbursement must be submitted by March 31 of the following year.

You have 180 days from the date the expense is incurred to file a claim.

Yes. WageWorks obtains fare cards and vouchers directly from the transit agencies and there is no additional cost to you.

The monthly pre-tax limits are established by federal law. The maximum pre-tax deduction for mass transit or van pooling is $110 for 2007 ($115 for 2008) and for parking it is $215 for 2007 ($220 for 2008). This program allows you to deduct the federal pre-tax maximum and pay for additional expenses with post-tax income.