Do contributions to my Flex Spending Account reduce my income for purposes of the Federal Earned Income Tax Credit?
No. Your Flex Spending Account contributions do not reduce income for purposes of calculating eligibility or amount of the Earned Income Tax Credit (EITC). The EITC is available to certain households whose total family income is below the following threshold amount: 1 child, $26,928; 2 or more children, $30,580 for 1999. Consult your tax advisor or the IRS for additional information.
Related Questions
- What types of income qualify as earned income for purposes of making regular contributions to a Traditional or Roth IRA?
- Do contributions to my Flex Spending Account reduce my income for purposes of the Federal Earned Income Tax Credit?
- Why does the Flex Spending Account worksheet show YTD contributions but I’m not allowed to change it?
