THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2025 65 Security number or employer identification number), enter “LAFCP” (Living Abroad Foreign Care Provider) on Form 2441 in the space for the care provider’s taxpayer identification number. AFSA recommends IRS Tax Topic 602, Form 2441 and instructions, as well as Form 1040 Schedule 3 and corresponding Form 1040 instructions. Health Care Savings Account (HSA) and Flexible Savings Account (FSA) In 2024, taxpayers covered by a self-only high-deductible insurance plan may contribute up to $4,150 to an HSA. Individuals with family high-deductible insurance coverage may contribute up to $8,300 for 2024. HSA 2024 contributions are due by the 2024 individual tax filing deadline (currently April 15, 2025). Distinct from an HSA, an FSA is a tax-advantaged account allowing an employee to contribute pre-tax wages to pay for qualifying medical expenses (as in the case of the Health Care FSAFEDS account) or to pay for qualifying dependent care (as in the case of the DCFSA account). The Consolidation Appropriation Act (CAA) signed by Congress on Dec. 27, 2020, permits FSA administrators to allow certain carryover and grace periods for FSA accounts. FSAFEDS has adopted many of these provisions. Health Care FSAFEDS (HCFSA) allows re-enrolled participants for the 2024 plan year to carry over $640 of unspent HCFSA funds to the next year. The Dependent Care FSA contribution limit for 2024 tax returns is $5,000 per household or $2,500 if married, filing separately. Readers should take note that masks, hand sanitizer, and sanitizing wipes used to prevent the spread of COVID-19 are now qualifying expenses for HCFSA funds (per IRS announcement 2021-7). Additionally, the CARES Act permanently expanded the definition of qualifying medical expenses to include feminine hygiene products and over-the-counter medications purchased after Dec. 31, 2019. This expanded definition allows taxpayers to withdraw funds from HSAs or FSAs (such as the HCFSA) to pay for these expenses. The IRS also announced that the cost of COVID-19 home testing is an eligible medical expense and may be paid or reimbursed from HSAs or FSAs. AFSA recommends Publication 969, the Form 8889 instructions, and the FSAFEDS website. Deductions for Moving for a New Job and Retiring from Overseas Are No Longer Available The personal costs incurred to move to a new job (IRC Sec. 217[j]) and for moving back to the United States after retiring from overseas are not deductible following amendments included in the 2017 Tax Cuts and Jobs Act (TCJA). Only active-duty members of the armed forces should use Form
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