Whether you fall into the category of habitual procrastinator or a diligent planner, everyone wants to keep more of their hard earned money. It’s possible to pay for LASIK surgery and save a significant amount of money on your taxes at the same time.
The bottom line is that on your next tax returns could be significantly smaller! Procrastinator or planner alike can save money when you mix tax returns and LASIK.
Keep More Money In Your Pocket
You worked hard for your money, so use one or both of these government plans to pay for medical expenses like LASIK and save money on taxes.
Plan #1 – Flexible Spending Accounts (FSA)
A Flexible Spending Account is a US government tax plan that allows employees to set aside pre-tax earnings for certain qualified medical expenses. In order to participate, your employer must sponsor the program.
You designate an amount to be deducted from your gross income in equal installments before taxes are withheld. You therefore reduce your tax burden while you set aside money for eligible medical expenses like LASIK.
Basic IRS Rules and Facts about an FSA
- You can only set aside a certain amount of money each plan year. For 2016 it was $2550 and for 2017 it will be $2600.
- Your company ultimately may limit the amount at or below the specified IRS maximum.
- In general, if you do not use all of the money in your FSA account by the end of the plan year, you forfeit it. This rule has been known as “Use it or lose it.”
- Recently the Department of Treasury has allowed some flexibility to either give a grace period to use the account, OR carry over $500 of unused money into the next year with no effect on the new maximum. An employer may only choose one of these options.
- You can combine your FSA with your spouse’s and gain even greater savings toward LASIK.
- You may use any amount of your FSA to pay for LASIK or other expenses on the first day of the plan year.
Plan #2 – Health Savings Accounts
An HSA is like a 401K for health care expenses. You may use this plan to pay for any out of pocket vision, dental or other medical expenses tax free. These plans are usually paired with high deductible insurance plans.
You can double the savings in conjunction with a Flexible Spending account that is compatible with your HSA. They work together allowing you to combine the tax free benefits from both accounts.
There is no time limit to use funds in a HSA.
Tips to Take Advantage of Tax Free Dollars
Check with your human resource department or plan administrator. Find out if your work offers either of these plans.
Ask about specific plan dates to enroll in a FSA, to use the funds, and if they offer a flexible option for the FSA.
If you are considering LASIK, schedule an appointment to find out if you are a candidate before you set aside the money in your FSA account.
Both of these plans can help you reduce your tax burden and help you keep more of your hard earned money.
Contact South Texas Eye Institute with additional questions, but don’t delay.
Use your FSA or HSA to save money on taxes and get LASIK.