FSA tax savings
Here's an example of how a PriorityFSASM could help you save money on taxes:
|
Without AN FSA |
With AN FSA |
| Your annual earnings |
$30,000 |
$30,000 |
| You set aside in a health care FSA |
- $0 |
- $300 |
You set aside in a dependent care assistance program
|
- $0 |
- $3,000 |
| Your taxable earnings |
$30,000 |
$26,700 |
| Federal income tax (15%) |
- $4,500 |
- $4,005 |
| State tax (6%) |
- $1,800 |
- $1,602 |
| Social Security tax and Medicare tax
(7.65%) |
- $2,295 |
- $2,043 |
| Your total taxes |
- $8,595 |
- $7,650 |
| After-tax health care payments |
- $300 |
- $0 |
| After-tax dependent care payments |
- $3,000 |
- $0 |
| Your annual take-home pay |
= $18,105 |
= $19,050 |
| Your total savings1 |
|
$945 |
