August 2011 Financial News Line Items

The U.S. Department of Labor (DOL) recently launched its first free timesheet app for iPhone and iPod Touch users. Employees can track their work hours, break time, and overtime hours and then e-mail their completed timesheets to their employers. The DOL believes that the information may be useful during Wage and Hour Division investigations of employers that fail to maintain accurate records.

The IRS has released the 2012 inflation-adjusted figures for health savings accounts (HSAs). The annual contribution limitation for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,100. For an individual with family coverage under an HDHP, the limitation is $6,250, up from $6,150 for 2011. The annual deductible for HDHPs is unchanged from 2011: not less than $1,200 for self-only coverage or $2,400 for family coverage. Annual out-of-pocket expenses for HDHPs cannot exceed $6,050 for self-only coverage (up from $5,950 in 2011) or $12,100 for family coverage (up from $11,900 for 2011).

A study on the impact of cash-back rewards on credit card spending and debt conducted by the Federal Reserve Bank of Chicago found that a person who receives an average cash-back reward of $25 increases spending by $79 and debt by $191 a month.

_{The general information in this publication is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purpose of avoiding tax penalties.}