Why should I use a Health Care Flexible Spending Account for reimbursement rather than deducting my medical expenses on my federal income tax return?
Only medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI) can be deducted on your federal income tax return. Before-tax Health Care Flexible Spending Account contributions are tax-free (for federal tax purposes). You do not have to meet the 7.5% AGI threshold before receiving the tax savings. Money set aside through a Flexible Spending Account is also exempt from FICA taxes. Return to top.
Related Questions
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