What are the tax advantages of using an FSA?

FSA contributions are excluded from employees' gross taxable income, so employees pay less in taxes, even though they make the same amount.

Claim Credit for Child and Dependent Care

Employees with a Child & Elderly Care FSA may also be able to claim the child/dependent care credit on their tax returns and exclude up to 35% of eligible expenses from their taxable income. Learn more about the IRS requirements for claiming the credit.

The example on this page is simplified to generally illustrate the tax savings of an FSA. Zenefits does not provide tax advice. Please contact a tax advisor to determine the actual benefit to a specific company or employee.

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