What is the Unreimbursed Healthcare account?
The Unreimbursed Healthcare account in our name for the Healthcare Flexible Spending account. This account allows eligible employees (even if they do not take the group insurance coverage) to use pre-tax dollars for out-of-pocket costs of healthcare for an employee and their family. Family members include anyone claimed as dependents on your income tax return (From 1040) as well as children or a spouse even if they file separate tax returns as long as you pay the healthcare expenses. Out-of-pocket healthcare includes allowable expenses on your Form 1040, (see Publication 502) as well as over-the-counter drugs and health clubs (when prescribed) which are either not paid or only partially paid by insurance or any other reimbursement plan. Thus, in effect you get itemized deductions for healthcare without having to itemize on your tax return (which means there is no income test as per the 1040, Schedule A which reduces the allowed deduction for healthcare based on a percentage, currently
