are flexible spending accounts tax deductible
No. If you use your health care flexible spending account to pay for eligible expenses, you cannot deduct those same expenses from your federal income tax return. Keep in mind that by IRS law, you are only allowed to deduct medical expenses that exceed 10% of your gross income. The advantage of the health care flexible spending account is that you can get a tax benefit on health expenses below that threshold. Fortunately, there are some strategies you can employ to reduce your healthcare costs, and one prime example is the Flexible Spending Account. What it is. With a Flexible Spending Account (FSA), your employer sets up a dedicated account for you and diverts some of your salary into it on a pre-tax basis. The most common type of flexible spending account, the medical expense FSA (also medical FSA or health FSA), is similar to a health savings account (HSA) or a health reimbursement account (HRA). Fortunately, there are some strategies you can employ to reduce your healthcare costs, and one prime example is the Flexible Spending Account. With a Flexible Spending Account (FSA), your employer sets up a dedicated account for you and diverts some of your salary into it on a pre-tax basis. Flexible spending account. A flexible spending account (FSA), also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States. Are Flexible Spending Account (FSA) contributions tax deductible? The contributions you make to your Flexible Spending Account (FSA) are not tax-deductible because the accounts are funded through salary deferrals. However, contributing to an FSA does reduce your taxable wages, since it is funded with pretax money. The Medical Reimbursement Account (also known as the Health Care FSA) is a reimbursement account that allows you to pay for essential health care expenses that are not covered, or are partially covered, by your medical, dental and vision insurance plans with money that is deducted from your paycheck pre-tax. Using a Flexible Spending Account (FSA) If you have a health plan through a job, you can use a Flexible Spending Account (FSA) to pay for copayments, deductibles, some drugs, and some other health care costs. Using an FSA can reduce your taxes. More answers: Flexible Spending Accounts. No. A similar product, called a Health Savings Account (HSA), allows you to set aside money on a pre-tax basis to pay some health expenses if you have a “high deductible” Marketplace health insurance plan. Get money-saving, tax-reducing help with your healthcare expenses with the Flexible Spending Account. Oct 17, 2015 at 11:03PM. A Flexible Spending Account can help you save money on your health-related spending. If you think you're paying a lot for healthcare expenses, you're right.
No, if you use your health care flexible spending account to pay for eligible expenses, you cannot deduct those same expenses from your federal income tax return.