Can I deduct FSA contributions?
Can I deduct FSA contributions? When you have an FSA, you are setting aside part of your salary so that you will be reimbursed for eligible medical or dependent care expenses during the year instead of paying out-of-pocket. Your $2,000 FSA contribution is paid in pretax dollars and therefore cannot be taken as a tax deduction. How do FSA deductions work? Here's how an FSA works. Money is set aside from your paycheck before taxes are taken out. You can then use your pre-tax FSA dollars to pay for eligible health care expenses throughout the plan year. You save money...