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Does my benefits account cover my dependent?

Health Care FSA, Limited Purpose FSA, HSA

Yes. You may request reimbursement for qualified health care and medical expenses incurred by the following persons:

 

Qualified medical expenses can be incurred by the following persons:

  1. You and your spouse.

  2. All dependents you claim on your tax return.

  3. Any person you could have claimed as a dependent on your return except that:

    a. The person filed a joint return;

    b. The person had a gross income of $4,300 or more; or

    c. You, or your spouse if filing jointly could be claimed as a dependent on someone else’s tax return.

For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption.

 

Dependent Care FSA

Yes. Your dependent care expenses must incur to pay for the care for the following persons:

  1. Your qualifying child who is also your dependent and under age 13 when the care was provided.

    • In divorced or separated parents or parents living apart situations, even if you can't claim your child as a dependent, he or she is treated as your qualifying person if:

      • The child received over half of his or her support during the calendar year from one or both parents who are divorced or legally separated under a decree of divorce or separate maintenance, are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year;

      • The child was in the custody of one or both parents for more than half the year; and

      • You were the child's custodial parent.

        • The custodial parent is the parent with whom the child lived for the greater number of nights in 2020. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Pub. 501.

        • The noncustodial parent can't treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents.

  2. Your spouse who wasn't physically or mentally able to care for himself or herself and lived with you for more than half the year; or

  3. A person who wasn't physically or mentally able to care for himself or herself lived with you for more than half the year, and either:

    1. Was your dependent, or

    2. Would have been your dependent except that:

      1. He or she received a gross income of $4,300 or more,

      2. He or she filed a joint return, or

      3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's tax return.

HRA

Yes. The money in an HRA can be used to pay for eligible medical expenses of any family member who qualifies as a dependent on the employee's tax return. However, the rule is permissive, not mandatory. The dependent eligibility fully depends on the employer policy. The dependent may need to be covered by health insurance (or individual health insurance, in the case of the ICHRA).

 

Commuter Benefits Accounts

No. Transit and/or parking benefits are limited to employee expenses only: reimbursement is not allowed for a spouse or dependent transit or parking expenses.

 

For more information about who is a dependent or a qualifying child, see Pub. 501, Dependents, Standard Deduction, and Filing Information.

 

If you have any questions, please feel free to reach out to us via live-chat, email to support@joinforma.com, or call us at 844-902-2902.

 
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