• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Facing tax choice on flex spending accounts

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. Due to an expensive surgery, I’m over the medical deduction limit in 2012. Can I pay additional expenses personally instead of using my FSA? K.C., Bethesda, Md.

A. Yes. In this case, you will have to decide between taking a tax deduction on your personal return for qualified medical expenses or receiving funds tax-free from the flexible spending account (FSA) to pay for qualified expenses. But you can’t do both, so do the math.

For 2012, qualified expenses are deductible to the extent the overall total exceeds 7.5% of your adjusted gross income (AGI). Beginning in 2013, the AGI floor generally increases to 10% of AGI.

Tip: In 2013, contributions to health care FSAs are capped at $2,500.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/32975/facing-tax-choice-on-flex-spending-accounts "

Leave a Comment