Much like last year, I had a bunch of FSA dollars left to spend in 2007. Here is the breakdown of the stuff I purchased "tax free" this year...
1 hypnosis session to quit smoking
2 new pair of glasses
1 prescription for smoking related meds
1 huge purchase from drugstore.com
The glasses are a last minute decision. I didn't know how to kill some of the remaining dollars, so eyeglasses are always an easy choice. This year I went with some rimless glasses for daily wear, and a new pair of prescription shades.
Drugstore.com probably had a record day. I purchased enough stop smoking stuff (patches, lozenges and such) to get me through an extended nicotine dependency. That wasn't quite enough to eat all of the funds, so I purchased a bunch of stuff that I probably will use throughout the year. Antihistamines, band aids, antacids and a variety of other regular use items. Nothing is cooler then creating your own personal "everything is 30% off sale" at the end of the year. (thanks to the pre-tax nature of the FSA)
keep an eye out for the new spec's I'm sure that I'll be looking good!
- ND
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7 comments:
Hi Dan,
You could have spent it all on health care items, donated a bunch
to some kind of mother teresa
organization and had yourself a
little charitable deduction - of course if you don't do long form it wouldn't work. Just a thought.
I think they refer to that as... tax fraud.
- ND
I don't think anon said to lie about the donation, but rather to make the donation. Is evil Bert planting seeds of fraud in your ear?
I think that the IRS would take umbrage with donating money that was pre-tax and expecting a tax write-off against other taxable income.
I'm not tax expert, but I think that I'd be owing somebody something after the audit.
Actually, on a serious note...
There are a finite list of items that can be purchased with your FSA dollars. Think of it as any medically necessary item that wouldn't be considered a everyday necessity. So toothpaste or vitamins wouldn't count but a wheelchair or a co-payment would.
I would have gladly donated the remainder to charity if the government would have let me. Unfortunately, they skewed the laws for their own favor. Anything that you can't spend by the end of the year you donate to them. How nice for them. How sad for the procrastinators like me.
- ND
As having accompanied you on the previous year's attempt to spend everything at the last minute (Chesterfield LensCrafters, hmm?), have you thoughts about reducing the amount that you withhold into your medical flex account?
Also, I just learned that there is a grace period until March 15 (or maybe the 30th?) to spend 'last year's' med flex money. I thought I was leaving money on the table, even after last week's trip to the optometrist. Both my and Tiny E's prescription changed, so we loaded up on the (needed) glasses and contacts. But I still have $180 left. I was glad to learn about this grace period because it gives me a little more time to find a source for some medical marijuana.
LOL
Be careful, I think the grace period is for reporting your expenses through Dacember 31.
Bro. Dave.
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