September 16, 2013
Using Flexible Spending Accounts to Cut Your Taxes
Learn about the benefits of taking advantage of flexible spending accounts.
Flexible spending accounts, or FSAs, can be an extremely valuable employee benefit. They let you pay for eligible health care and dependent care expenses on a pre-tax basis, reducing your income tax bill.
Health Care FSAs can be used to pay for medical expenses, deductibles and copays not covered by insurance plans.
Dependent Care FSAs are for expenses to care for dependents like children or elderly parents.
Flexible Spending Account contributions are deducted from your paycheck year round. As you incur expenses, you submit receipts for reimbursement.
FSAs have several restrictions, like contribution amounts and no refunds for unused balances.
Bottom line: Flexible spending accounts could save you thousands of dollars every year.
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