Flexible Spending Account (FSA)

A Flexible Spending Account (FSA) allows you to put pre-tax money into accounts to reimburse yourself for out-of-pocket health and dependent care expenses that you would have paid for with after-tax money.          

 

City Colleges of Chicago offers employees an FSA plan through Total Administrative Services Corporation (TASC), as of April 1, 2023. TASC is a nation-wide provider of health and dependent FSA benefits. A Health and Dependent Care FSA helps you save money on your out-of-pocket family health and childcare expenses by allowing you to set aside pre-tax dollars for qualified medical expenses. FSAs are exempt from federal income taxes, state income taxes, and Medicare taxes. Depending on your tax bracket, you may save 30% or more on your out-of-pocket expenses.                            

 

Expenses reimbursed from your Healthcare FSA cannot also be claimed as a tax deduction on your income tax return. Expenses reimbursed from your Dependent Care FSA cannot be used for a childcare tax credit on your income tax return.                            

 

You must re-elect your FSA independent care account every year. Your prior year FSA elections will not automatically be continued for health and dependent care the following calendar years. IRS regulations require that you re-enroll in your FSA each year during Open Enrollment.                            

 

Unused Health or Dependent Care FSA balances must be forfeited under IRS regulations. Make sure you carefully estimate your expected health and dependent care expenses before you enroll in or change your FSA election.