Generally, open enrollment for most companies is in the 4th quarter (October – November period). Therefore, please evaluate your dependent care expense such as afterschool programs or childcare expenses. You can obtain a pretax deduction of $5,000 per household. But this must be done through your employer during open enrollment.
In addition, evaluate your medical expenses. Most taxpayers will not qualify for medical expense deductions on their tax returns because of the income limitations. However, you can still take advantage of tax breaks associated with medical expenses. First develop a medical budget for 2020 medical expenses. Once that budget is established, request that this amount be withheld from your compensation pretax.
These tax savings tips can net you savings of $5,000 or more; therefore, please evaluate these two options during open enrollment.
Riolene Ibok, CPA, MBA ACCOUNTING & TAX ADVISORY GROUP
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