Estimate Your Income Tax Savings

This tool projects your approximate federal income tax savings as a result of making a tax-free contribution to the spending account. A Spending Account can help you save money by giving you a tax break. You set aside money from each paycheck on a before-tax basis to pay for a variety of eligible expenses. As the money you contribute is deducted from your paychecks, your taxable income is reduced.

Note: Although Internal Revenue Service rules state that money you set aside but don't use during the plan year is forfeited, you can still save money overall with the tax break. If you still have money in your account near the end of the plan year, remember that you can use up your remaining balance by spending it on general eligible expenses such as bandages or saline solution.

Enter Annual Amounts for

Your Spending Account contribution $

Your salary

Your federal income tax bracket
Find your tax rate

Calculate

Totals for Federal Income Tax Savings and FICA Tax Savings

Federal income tax savings $

FICA tax savings $

Total estimated federal tax savings $

Tax Savings Details
¹This assumes that any contributions to the account would otherwise be included in your taxable income and taxed at your marginal tax rate. It also assumes that the 7.65% FICA tax would otherwise apply. If your pay is above the Social Security wage base, your FICA tax savings may be lower.

This is only an estimate. Your actual savings may vary. Keep in mind that this estimator only projects your federal tax savings. In most states, these contributions are also free from state income tax, which means you could save even more.You should also take the Earned Income Tax Credit into consideration. You may want to consult your tax advisor.