Fsa Calculator

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FSA Tax Savings Calculator

Estimate your annual tax savings by contributing to a Flexible Spending Account.

Single (12% Bracket) Single (22% Bracket) Single (24% Bracket) Married (12% Bracket) Married (22% Bracket) Married (24% Bracket)
2024 Max: $3,200
2024 Max: $5,000

Your Estimated Results

Total Annual FSA Contribution: $0.00
Estimated Annual Tax Savings: $0.00
Effective Take-Home Increase per Month: $0.00

*Calculation includes Federal Income Tax + 7.65% FICA (Social Security/Medicare) savings.

function calculateFSASavings() { var salary = parseFloat(document.getElementById('annualSalary').value) || 0; var fedRate = parseFloat(document.getElementById('taxStatus').value) || 0; var health = parseFloat(document.getElementById('healthContribution').value) || 0; var dep = parseFloat(document.getElementById('depContribution').value) || 0; // FICA Tax Rate is 7.65% var ficaRate = 0.0765; // Cap logic for 2024 if (health > 3200) { health = 3200; document.getElementById('healthContribution').value = 3200; } if (dep > 5000) { dep = 5000; document.getElementById('depContribution').value = 5000; } var totalContribution = health + dep; // Tax savings = Contribution * (Federal Rate + FICA Rate) // State tax savings are not calculated here as they vary, but could be added. var totalTaxRate = fedRate + ficaRate; var annualSavings = totalContribution * totalTaxRate; var monthlySavings = annualSavings / 12; document.getElementById('totalContrib').innerHTML = "$" + totalContribution.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('taxSavings').innerHTML = "$" + annualSavings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyIncrease').innerHTML = "$" + monthlySavings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('fsa-results').style.display = 'block'; }

Understanding the Flexible Spending Account (FSA)

A Flexible Spending Account (FSA) is a powerful employer-sponsored benefit that allows you to set aside a portion of your earnings before taxes are taken out. This money can be used to pay for qualified medical, dental, vision, and dependent care expenses. By using pre-tax dollars, you effectively lower your taxable income, which puts more money back in your pocket.

How the FSA Calculator Works

This calculator estimates your savings by applying your marginal tax bracket and the standard FICA tax (7.65%) to your planned contributions. When you contribute to an FSA, you avoid paying both federal income tax and payroll taxes on that specific amount.

2024 FSA Contribution Limits

  • Health Care FSA: Maximum of $3,200 per individual.
  • Dependent Care FSA: Maximum of $5,000 per household (or $2,500 if married filing separately).

Examples of Qualified Expenses

Most people use their Health Care FSA for everyday medical costs that insurance doesn't cover fully:

Category Examples
Vision Contact lenses, prescription glasses, LASIK surgery.
Dental Cleanings, fillings, braces, and extractions.
Over-the-Counter Sunscreen, first aid kits, pain relievers, and allergy meds.
Dependent Care Preschool, before/after school care, and elder care.

The "Use It or Lose It" Rule

Caution: Unlike a Health Savings Account (HSA), FSA funds generally do not roll over year-to-year. If you do not spend your FSA balance by the end of the plan year (or grace period), the remaining funds are forfeited to your employer. Always estimate your expenses conservatively using our calculator to avoid losing your hard-earned money.

Calculation Example

Imagine you earn $60,000 a year and fall into the 22% tax bracket. If you contribute $2,000 to your Health Care FSA to pay for upcoming dental work and new glasses:

  1. Federal Tax Savings: $2,000 x 22% = $440
  2. FICA Tax Savings: $2,000 x 7.65% = $153
  3. Total Annual Savings: $593

In this scenario, you are essentially getting $2,000 worth of medical services for a net cost of $1,407.

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