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|
 |
Regardless whether you are a single person, dual-income household or a family
person with a non-working spouse, a Flexible Spending Account will provide you with
additional benefits and more take-home pay.
The amount you contribute to a Flexible Spending Account reduces your taxable
income. Lower taxable income means lower Federal, Social Security and, in most
cases, state* and city income taxes.
Although the tax advantage of your Account(s) will vary depending on your salary
level, tax filing status and contribution amounts, the following examples shows the
potential tax savings (Federal and Social Security taxes only) available through the
reimbursement account program.
*Pennsylvania taxes contributions to Dependent Care Accounts. New Jersey taxes
contributions to both Health Care and Dependent Care Accounts. |
 |
| |
| |
Single Person
|
Working Couple |
Family Person
(non-working spouse) |
| |
Without FSA |
With FSA |
Without FSA |
With FSA |
Without FSA |
With FSA |
| Total Monthly Pay |
$2,500 |
$2,500 |
$4,100 |
$4,100 |
$3,250 |
$3,250 |
Less Non-Taxable Benefits
|
|
|
|
|
|
|
| Medical / Dental Expenses |
$0 |
$50 |
$0 |
$150 |
$0 |
$250 |
| Child Care Expenses |
$0 |
$0 |
$0 |
$400 |
$0 |
$0 |
| Total Pay Subject to Tax |
$2,500 |
$2,450 |
$4,100 |
$3,550 |
$3,250 |
$3,000 |
| Less Deductions |
|
|
|
|
|
|
| Federal & State Taxes* |
$700 |
$686 |
$1,148 |
$994 |
$910 |
$840 |
| Social Security Tax |
$191 |
$187 |
$88 |
$76 |
$70 |
$64 |
| After Tax Income |
$1,609 |
$1,577 |
$2,864 |
$2,480 |
$2,270 |
$2,096 |
| After Tax Expenses |
|
|
|
|
|
|
| Medical / Dental Expenses |
$50 |
$0 |
$150 |
$0 |
$250 |
$0 |
| Child Care Expenses |
$0 |
$0 |
$400 |
$0 |
$0 |
$0 |
| Spendable Income |
$1,559 |
$1,577 |
$2,314 |
$2,480 |
$2,020 |
$2,096 |
| Annual Increase in Take Home Pay |
|
$216 |
|
$1,992 |
|
$912 |
|
|
|
|
|
|
