According to a recent survey, the average family of four spends almost $3,600 in co-pays, coinsurance and deductible costs for medical, dental and vision expenses. If you contribute $2,600 to a Healthcare Flexible Spending Account you would save approximately $650 in taxes. If you insert your annual compensation and Healthcare FSA contributions below, you will see what your approximate tax savings will be.
Healthcare Flexible Spending Account Tax Savings
Healthcare Flexible Spending Account Tax Savings Definitions
- Gross compensation
- This is your total income for the year. To keep things simple this calculator assumes this is your income before taxes but after deductions for retirement contributions such as 401(k)s, IRAs, etc.
- FSA contribution amount
- Total Healthcare Flexible Spending Account contribution. The amount per period that you wish to contribute to a Flexible Spending Account (FSA) for medical and dental expenses. All amounts you enter here are considered pre-tax deductions from your paycheck if you participate in your company's medical FSA. We consider these expenses to be ordinary after-tax expenses if you do not participate. In 2018, the maximum annual contribution to a medical FSA is $2650 per person. This amount is indexed for inflation for future years.
- Total taxes
- We have assumed a tax savings of 25% of the health card flexible spending account contribution. Your actual tax savings may vary. Please check with your accountant.