Special schooling, equipment, changes to your house, etc., also may be deductible, but only if due to illness or a physical or mental condition. The expenses can be for you or any of your dependents. If you're an employer you can put these plans into place. Flexible spending accounts . The first is a flexible spending account.
Some companies call it an individual spending account.
With these type of accounts, you authorize your employer to take a certain amount from your paycheck and deposit it to your account in the plan. You're not taxed on the amount you contribute to the plan and you're not taxed when the plan pays your bill. The problem is, anything left in the account at the end of the year is lost. So you have to plan your contribution well, so you use it up. Medical Savings Accounts .