What are pre-tax dollars?
The money set aside in your FSA is deducted from your gross earnings before taxes are taken out. This is called pre-tax money or “pre-tax dollars.” Thus, if your average pay check is $3,000 before taxes and you elect an FSA so that $50 comes out of each paycheck, then instead of being taxed on $3,000 you will be taxed on $2,950.
Related Questions
- Can I add value to my EZ Rider card with my pre-tax transit benefit dollars I get through my employer such as Commute Check or WageWorks?
- If I am using pre-tax dollars for the service purchase agreement with ASRS, how is that brought over to CORP at the time of transfer?
- What do pre-tax and post-tax dollars mean?
