Why should I use a Flexible Spending Account (FSA) for reimbursement rather than deducting the expenses on my income tax return?
Only medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI) can be deducted on your income tax form. FSAs are federal tax free from the first dollar; you do not have to meet the 7.5% AGI threshold before receiving the tax savings. Money set aside through an FSA is also exempt from FICA taxes. This exemption is not available on your federal income tax return.
Related Questions
- Why should I use a Health Care Flexible Spending Account for reimbursement rather than deducting my medical expenses on my federal income tax return?
- Why should I use a Flexible Spending Account (FSA) for reimbursement rather than deducting the expenses on my income tax return?
- Can I roll over my Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) account balance to an HSA?
