Flex Spending Accounts
Now is the time of year that many employers offer their employees the option to sign up for Flex Spending Accounts (FSAs) for the upcoming year. These are tax-free contributions that can be used to pay for out-of-pocket health care costs, such as copays, deductibles, prescriptions, medical equipment and much more.
With the higher standard deduction, and the floor for unreimbursed medical expense deduction going up to 10% of adjusted gross income for 2019, itemizing medical expenses will be out of reach for many Americans. Using a Flex Spending Account is a great alternative to pay for medical expenses not covered by your insurance, and get a tax savings for it.
Talk to your employer about setting up an FSA if you plan to have medical expenses next year that may not be covered by your insurance. You can contribute up to $2,700 into an FSA for 2019 and not pay income tax on these contributions.
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