Healthcare Flexible Spending Account Tax Savings Calculator
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 $2,750 to a Healthcare Flexible Spending Account you would save approximately $583 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 Calculator Definitions
- Federal Income Tax Rates:
- 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.
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. Note that your marital status as of the last day of the year determines your filing status.
Filing Status Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately". Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider. Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
The standard deductions are: **STANDARDDEDUCTION_CURRENT_DEFINITION**
- FSA contribution amount
- Total Healthcare Flexible Spending Account contribution.