In light of recent developments regarding COVID-19 (coronavirus) and the impact it is having across the country, Congress and the IRS have made significant decisions to provide relief for workers and their families. Learn more below about tax deadline extensions, HSA contribution extensions, and information about coronavirus treatments with a high deductible health plan.
2020 Tax Deadline Extension
On March 21, 2020, the IRS formally announced that the tax filing deadline has been extended to July 15, 2020. This is a three month extension from April 15.
The Treasury Secretary and other officials encourage people to file sooner, especially if they are expecting a refund.
If you need assistance with tax filing, contact a certified tax professional.
2019 HSA Contribution Extension
Along with the tax deadline filing extension, the IRS is also extending the period in which Health Savings Account (HSA) owners can make contributions for 2019. Historically people have had until April 15 (the usual filing deadline) to make additional contributions up to their annual limit. HSA owners now have until July 15 to contribute to their accounts. You can find more information in Question 21 of the FAQ published by the IRS.
For 2019, HSA owners could contribute up to $3,500 for self-only coverage and $7,000 for family coverage. Account owners age 55 and older can add a catch up contribution of $1,000 over the annual limit. Learn more information about HSA forms and tax filing.
Coronavirus Testing and Treatments
Under recent legislation passed by Congress, testing for coronavirus is free. This includes the cost of a trip to the doctor’s office or emergency room for a test.
However, people may still be required to pay for treatment due to individual circumstances. For those with an HSA-eligible high deductible health plan (HDHP), the federal government has made it easier. The IRS recently approved people in those plans to have coronavirus testing and treatment covered by the plan before they meet their deductibles – without jeopardizing their plan’s status. That allows those with an HSA to continue contributing to their account without disruption.
Dependent Care FSA and Health FSA
At this time, there has been no action to extend grace periods or relax spending restrictions for Dependent Care and healthcare Flexible Spending Accounts (FSAs).
DataPath Administrative Services is a third party benefits administrator headquartered in Little Rock, Arkansas.