The Hidden Tax Break
Did you know that your premiums for medical, dental and vision are deducted from your paycheck on a pre-tax basis? They help lower the amount of your overall total taxable earnings in much the same way as a Flexible Spending Account. The less of your pay the IRS sees as taxable is more money in your pocket! For a bigger tax break, consider contributing to a health care or dependent care Flexible Spending Account.
Estimate your Out-of-Pocket Costs for Health Care
A Flexible Spending Account is an excellent way to pay for health care expenses with pre-tax dollars. This worksheet will assist you in estimating the out-of-pocket medical expenses that you and your family expect to incur during the plan year. Reviewing the expenses you had this year will give you a good indication of what your expenses might be for the new plan year. Also, with the availability of a debit card, your funds are easier to access.
| FSA Health Care Worksheet |
Last Year |
Estimated This Year |
Medical deductible |
|
Medical co-payments |
|
Medical co-insurance |
|
Prescription medication co-payments |
|
Dental co-payments |
|
Vision co-payments and dispensing costs |
|
Hearing aid expense |
|
Over-the-counter medications with a prescription |
|
Other eligible health care expenses |
|
Total Expenses: |
|
Keep in mind when determining how much to contribute to your Medical Flexible Spending account that federal law requires that you forfeit any funds remaining in your account at the end of your plan year.
FSA Plan Documents:
FSA Plan Document
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