There are at least two ways you can save tax money with LASIK at Toledo LASIK & Cataract:
- By deducting LASIK as a medical expense
- With your company’s Flex Spending Plan.
If your medical expenses reach 7.5% of your income in any given year, the price of your IntraLASIK can be deducted for tax purposes. In May 2003, the IRS confirmed that laser vision correction indeed qualified as a medical expense for this purpose. Most people, however, end up not reaching the 7.5% threshold. Therefore, they turn to another popular program: Flexible Spending Accounts.
FAQ’s on Flexible Spending
What is a Flexible Spending Account (FSA)?
FSA — also called a flex plan, reimbursement account, Flex 125, Tax Saving Plan, Medical Spending Account, a Section 125, or a Cafeteria Plan — is an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax basis. If you expect to incur medical expenses that won’t be reimbursed by your regular health insurance plan, you can take advantage of your employer’s FSA, if one is offered.
What is the benefit of an FSA?
FSA saves you money by reducing your income taxes. The contributions you make to an FSA are deducted from your pay BEFORE your federal, state, or Social Security taxes are calculated and the contributions are never reported to the IRS. The benefit is that you decrease your taxable income and increase your spendable income which can save hundreds or even thousands of dollars a year.
How do FSAs work?
At the beginning of the plan year (which usually starts January 1st), your employer asks you how much money you want to contribute for the year (there are limits) into your FSA. You have only one opportunity a year to enroll, unless you have a qualified “family status change,” such as marriage, birth, divorce, or loss of a spouse’s insurance coverage. The amount you designate for the year is taken out of your paycheck in equal installments each pay period and placed in a special account by your employer. As you incur medical expenses that are not fully covered by your insurance, you submit a copy of the Explanation of Benefits or the provider’s invoice and proof of payment to the plan administrator, who will then issue you a reimbursement check.
What expenses are FSA eligible?
Any expense that is considered a deductible medical expense by the IRS and is not reimbursed through your insurance can be reimbursed through the FSA. These include most elective surgeries, laser vision correction, deductibles, eyeglasses, and prescription drug co-payments.
Am I eligible for LASIK?
We recommend that you schedule a complimentary consultation to help you determine if you’re a good candidate for LASIK laser eye surgery. Our medical staff carefully screen prospective patients as to whether they are a good candidate for LASIK. Treating each patient with respect to their unique requirements and vision correction needs begins with a thorough eye exam.
2024-25 FSA Contribution Limits
According to the IRS, laser eye surgery is a qualified expense for use of FSA funds. The FSA contribution limit established by the IRS in 2024 is $3,200, with the option to carry over $640 to 2025 if you don’t use all of your funds by the end of the year.
If you have a Flexible Spending Account, speak with your benefits manager to get the specifics about your plan.
