Employee FSA Tax Savings Calculator
You can save on federal, state, and local taxes for many medical and dependent care expenses when you put pre-tax dollars into your flexible spending account (FSA). In fact, FSA participants save an average of up to 40 percent each year on many out-of-pocket expenses.*
Please note that eligible expenses will be reimbursed in full up to $2,600 for medical expenses per plan year, and $5,000 for dependent care expenses per plan year. Any unused money at the end of the plan year will be forfeited. To avoid this, use the calculator below to base your dependent care or medical FSA contributions on an estimate of qualifying expenses that you and your family will have throughout the year.
Potential Tax Savings: $0
Based on your spending, you should plan to contribute [total from medical] toward your medical FSA. You can contribute [X] more and still be fully reimbursed.
You have reached the medical FSA limit. You can maximize your tax savings potential by contributing the $2,600 maximum.
Based on your spending, you should plan to contribute [total from dependent] toward your dependent care FSA. You can contribute [X] more and still be fully reimbursed.
You have reached the dependent care FSA limit. You can maximize your tax savings potential by contributing the $5,000 maximum.
The information in this estimator should not be considered legal or accounting advice and it should not substitute for legal, accounting, and other professional advice. The estimated tax savings amount above is not a guarantee and is provided for informational purposes only. The actual tax savings may change depending on state, local, and other applicable taxes. Calculations are based on single filing. This estimator accounts for annual limits on FSAs, which are $2,600 for medical expenses per plan year, and $5,000 for dependent care expenses per plan year. After this limit is reached, expenses are not reimbursed. If you require legal or accounting advice, or need other professional assistance, you should always consult your attorney, accountant, or other professional advisor to discuss your particular facts, circumstances, and business needs.
* Based on an average annual employee FSA contribution of $1,500. Specific savings depend on a participantâ€™s federal tax bracket and state and local tax rates.