Healthcare flexible spending accounts are an employee benefit by which workers can set aside a certain amount of their salary, pre-tax, to use for healthcare costs. Some 33 million American workers currently take advantage of FSAs to save on their income tax bills. Contributions an employee makes to an FSA are deducted from the employee’s salary before federal, state or social security taxes are calculated. By using an FSA, you decrease your taxable income and increase your spendable income. …
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