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<p>FSAs would seem to be not reportable, though the term “benefits from” doesn’t make a lot of sense, it’s contributions to. But the rationale for excluding is likely that the amounts, unlike HSAs, have to be spent in the year for qualified medical expenses and aren’t available to use for college expenses.</p>
<p>Just a thought. I do not make contributions to my FSA. I do not take health insurance through my employer so I can put those credits in my FSA. I think the FSA in real cafeteria cases (self-funded might be different) are not included as income the same way that employer contributions to health care are not counted as income on either your FAFSA or your 1040. You can’t take the money and run, so to speak. You “buy” only your employers approved benefits, health, life, disability, FSA, or dependent care accounts</p>
<p>Right. An HSA is kind of like a 401K for healthcare. It can be a long-term savings plan. An FSA is for this year only. </p>
<p>The medical expenses line is also a variable here. I don’t even know how much medical expenses are taken into account, or how bad they have to be before they are considered.
When I was doing the profile, I couldn’t decide whether to add health insurance premiums and the fsa to the medical expenses line. I called 3 colleges and got varying answers (after searching cc of course)</p>
<p>“Flexible spending arrangements.
These are employee benefit
programs, sometimes also called “cafeteria plans.” Neither
contributions to nor payments from these programs should be
counted as untaxed income”</p>
<p>Taken from a FAFSA Handbook. FOr some reason, I can’t get into PDF sites and extract right now. </p>
<p>But I stand corrected. It appears that contributions, as well as disbursements from these plans, are not reportable on FAFSA as unearned income or added back into income as HSA, IRA and 401K as well as other suchplans are.</p>
<p>Still anyone, everyone so effected should go to the FAFSA site and read the current rules on this. Don’t go soley by what anyone says–always check original source material.</p>
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<p>No, they’re just trying to level the playing field between people who pay for medical care out of pre-tax income, and those who pay for it out of taxed income. They want to know how much money you have available in total for <em>all</em> of your expenses, compared to what someone else has.</p>
<p>thumper, the whole point of FSAs is that the money should not appear in box 1 of W2 so that you do not pay federal income tax on that money. It is supposed to be pre-tax deduction. It is included in line 5, medicare wages. If your FSA was included in line 1, then your benefits or other human resources people made an error and you paid taxes you should not have. If I were you, I would take up the matter with them, even though it has been a few years.</p>
<p>I had the same question this year. Last year when i did the FAFSA I did not include the money we put in our FSA (didn’t think of it) but then this year I thought of it so I put it in but then I did some research and I don’t think you have to put it in so I went back and corrected our FAFSA. </p>
<p>Found this information on a FAFSAonline.com website. </p>
<p>“Other untaxed income: Other untaxed income is kind of vague. Some examples shown are worker’s compensation or disability, but the more illustrative list is the list of what not to include, such as student aid (including scholarships), earned income credit, tax credits for children, welfare, Social Security, workforce investment, combat pay, flex savings plans, foreign income, and most other tax credits like special fuels. Chances are most people do not have anything to add here - if you think you might, you will want to consult a qualified financial planner.”</p>