Mike,

Not sure if this what you want, but I do something similar. Ocassionally,
I have a medical expense that does not qualify for my FSA, but it would be
tax deductible. I merely make that decision at the time I enter it. If
it is going to be deductible, I will have a category asociated with it
that will be associated with a tax form. If it is to be reimbursed
through my FSA, it will be a transfer which will never appear on my end of
year tax report.

Another alternative, would be to have 2 subcategories off of healthcare:
medical and medical-tax deductible. This is simpler but not as elegant.

Bob



On Wed, 23 Feb 2005, [Utf-8] mikeleick wrote:

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With the explanations shown, I end up with medical expenses that I have been
reimbursed for.

How do I track reimbursements for tax purposes?


"Chris Cowles" wrote:

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Dick Watson wrote:
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That's what I do:

FSA (Flexible Spending Account) = Cash account in Money, in budget.
Paychecks transfer amount to FSA account. Because the account is in
budget, transfers don't show up in budget reports. Relevant expenses are
paid by cash/check/credit card. Reimbursements happen by check/payroll
deposit, transferred from FSA account.

Slightly OT: My wife's employer (HCA) now offers a benefits card used
for medical expenses that drafts directly off the medical FSA.
Transaction history and pending reimbursements are available online.

Because medical FSA funds are available as of 1/1, the balance available
shows the total planned deductions. YTD deposits are $0. I'm still going
to manage it the same as usual, ie, $0 starting balance. But some
expenses will be paid directly out of the FSA account rather than from
checking/credit card, then reimbursed.

Chris Cowles
Gainesville, FL

Use whatever category you'd like to record the healthcare spending
transactions in whatever account actually incurred the expense. There's no
magic there.

I'd not set the HCSA to be an asset. I'd just use Cash. Not sure why.

I'd also not have that account flagged for out of budget.

When you reimburse from the HCSA just transfer the cash to the account you
deposit it in.

This should only hit your budget once--for the reimbursable expense. This
seems as it should be. You are paying the expense.

"Jerry P" <JerryP[at]discussions.microsoft.com> wrote in message
news:04EBECF2-D5E6-484C-BE3A-4171BE3FA985[at]microsoft.com...
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OK... maybe I'm stupid, but how do I do the following? (Using Money 2003
Deluxe - Yes, I've suffered with this problem for 1.5 years now.)

I have a medical pre-tax spending account set up on my paycheck so on my
budget this amount shows under the "Transfer out of budget accounts" group
(along with my 401k deduction). My pre-tax account is set up as an "asset"
account.

Here is my question. When I record an expense or withdrawl for a doctor's
bill, etc., what category am I supposed to use? How does this whole process
work?

I knew how to do this in Quicken 98, but not in Money. The way I'm doing it
now I get hit twice on my budget for expense that I have reimbursed with
dollars from this pre-tax account.