REMEMBERING THE EXPIRED COVID BENEFITS AND GUARDING AGAINST IDENTITY THEFT.
EXPIRED BENEFITS in 2022.
As the omicron virus rages across the world, many are wondering about the temporary changes that were made to health plans. More specifically, consumers are wondering what will happen to their health insurance, especially when it comes to flexibility with their own money in health savings accounts.
The Coronavirus Aid, Relief and Economic Security Act and American Rescue Plan Act — trillions of dollars in aid passed by President Trump and President Biden respectively – gave us a lot of flexibility in how much of our own money we can keep in our flexible spending accounts, health savings accounts and dependent care flexible spending accounts. But that ended when the calendar turned and no one in Congress is discussing whether the flexibility should be continued.
The Cares Act
For example, the CARES Act allowed people to roll over an unlimited amount of their FSA dollars. This provision, otherwise known as part of the Consolidated Appropriations Act, meant account holders were no longer limited to the previous $550 rollover limit. This was helpful to those who needed to postpone a procedure due to COVID.
Since that provision expired, 2022 will be the last year people can bring their entire FSA with them into the new year. Unless it changes, people will be able to carry no more than $570 with them into 2023, (the $570 is an inflation adjustment to the previous $550).
This could become a problem if people have trouble accessing medical care this year, which is starting to become an issue given the omicron wave and the crisis emerging from lack of blood donations. In other words, some might have extra cash left in their FSA and nowhere to spend it.
The Safe Harbor provision of the CARES Act also expired. This was designed to encourage telehealth during the pandemic by allowing high-deductible health plans to cover remote services at little or no cost, even before the plan user reached their deductible. Now that it’s expired, people will have to pay full price for virtual healthcare until their high deductible is met – and that could be a steep increase.
The American Rescue Plan Act
The American Rescue Plan Act offered dependent care reimbursement accounts, which are a type of FSA meant for costs related to children under 13 (or dependents incapable of self-care). Since the mid-1980s, the contribution limit was $5,000, but in 2021 Congress increased the amount to $10,500. Well, that expired too.
The good news is that the U.S. Chamber of Commerce and the American Benefits Council are trying to get Congress to act. Stay tuned.
IDENTITY THEFT & TAXES
Identity theft is one of the fastest-growing crimes in the United States. Identity theft is a type of fraud in which a thief uses your personal information to conduct transactions in your name. Criminals may, for example, use your identity to open or empty bank accounts, obtain credit cards, or take out loans. In addition to fraud directly concerning your finances, thieves can also use your information to commit crimes that may affect your taxes.
Protecting Yourself
Before you become a victim of identity theft, consider these steps to help protect yourself.
- If you must give out personal information, be aware of your surroundings and do it discreetly.
- Do not give out personal details over the phone unless you have made the call yourself.
- Properly destroy any documents, receipts, or pieces of mail that contain information an identity thief might find useful, including your bank account information, Social Security number, address, and birth date.
- Avoid using your Social Security number as part of a password or pin number, or on your driver’s license, unless necessary.
- Secure your personal computer using firewall programs, antivirus software, and secure browsers before revealing personal information online.
If you receive a notice from the IRS that leads you to believe that your personal information has been used to commit tax fraud, contact the IRS by phone or in writing as directed in the notice. Possible triggers indicating you may have been the victim of identity theft include statements that you received wages from an employer unknown to you or that more than one tax return was filed in your name.
IRS tax examiners can work with you and other agencies, such as the Social Security Administration, to resolve these discrepancies. It is important to note that the IRS will not initiate a request by e-mail for taxpayer information in this, or any other, situation. If you do receive such a request, it may be an attempt by identity thieves to obtain your tax information.
Identity theft can be a financially and emotionally devastating ordeal. For more information about identity theft and what to do if you become a victim, visit the FTC’s website, www.ftc.gov.
