COVID-19 and Paying for Day Care and Elder Care Expenses
Several pieces of legislation and IRS Notices have passed that allow for greater flexibility in using your DCFSA funds. Below are updates to the standard restrictions.
You may make contributions of up to $10,500 to your DCFSA in 2021 ($5,250 if married and filing separate income tax returns).
You have until December 31, 2021, to spend any unused 2020 DCFSA balance.
You have until December 31, 2022, to spend your 2021 DCFSA balance. This gives you an additional full year to use your 2021 DCFSA money.
If your dependent child turned age 13 in 2020, you may use your DCFSA money to cover day care costs incurred for that child in 2020. Additionally, if you have a balance remaining in your DCFSA after all 2020 reimbursements have been made, then you may use any remaining DCFSA funds for qualifying day care costs you incur in 2021 (until that dependent turns 14).
If your dependent child turns age 13 in 2021 and you have a balance remaining in your DCFSA after all 2020 reimbursements have been made, you may use your DCFSA money to cover day care costs incurred for that dependent in 2021. Additionally, you may use any new 2021 DCFSA funds for qualifying day care costs you incur for that dependent in 2021 (until that dependent turns 13).
You can make changes to your DCFSA by November 30, 2021, without having to prove that you’ve had a qualified life event.
COVID-19 Virgin Pulse Resources
Adjust to a New Normal
Virgin Pulse has teamed up with five key partners to help support your well-being during the COVID-19 crisis. These tools are free to use through May 31, 2020:
Aaptiv—Access to thousands of at-home cardio and relaxation classes created and guided by world-class certified trainers.
Enrich—Financial resources to help keep your finances in good health during this uncertain time.
Whil—A daily menu of mini-courses to manage stress, anxiety, mental well-being and sleep issues.
meQuilibrium—Simple, effective tools to manage uncertainty, stress and anxiety with daily moments of calm and reassurance.
Zipongo—A digital nutrition platform that connects you with food delivery, immune-boosting recipes and help to avoid over-snacking while staying at home.
If you are diagnosed as having COVID-19, you won’t have to pay for COVID-19 treatment from doctors, hospitals and other health care providers in Anthem’s network. And testing is covered at 100% whether it’s done in or out of Anthem’s network. However, a doctor must order a test for you. Check Anthem’s website for more information.
As we fight the COVID-19 pandemic, it’s good to know you can get medical treatment without burdening our hospitals and health care facilities. With LiveHealth Online, you can visit a doctor in the safety and security of your own home. Video visits are now covered at 100 percent through December 31, 2021.
What if I have questions about tax considerations?
Consult your tax advisor for information about the tax consequences of reimbursements you receive from the program and help in filing Form 8839.
Are there tax considerations I should be aware of?
Yes, there are. Hess intends that benefits you receive through the Adoption Assistance Program not be considered income for federal income tax purposes, to the extent permissible under Internal Revenue Code section 137. The IRS adjusts the tax credits and income limits periodically. You should consult with a professional tax advisor regarding the latest published figures. Please note that state and local taxes may also apply to benefits you receive through this program.
You are responsible for understanding the tax treatment of benefits you receive through the program and for claiming any applicable income exclusion by filing a Form 8839 along with your federal income tax return.
Consult your tax advisor for information about the tax consequences and help in filing Form 8839.
Where can I get more information about the program?