Medical Flexible Spending

Each year, my wife and I estimate healthcare costs in order to plot out our medical flexible spending.  It is perplexing to consider why you have to guess at how much you might spend on health care costs over a year in order to get a tax break, but those are the rules.

So we sit down and look at what we have spent in medical necessities over the past year and try to guesstimate what costs might differ and by how much to try to get an accurate medical flexible spending final amount. 

Once we determine the amount for the year 1/26 of that amount is taken from each paycheck, pre-tax.  It is a wise choice to make and we always pass the amount we estimated, however, it is a nice little tax break to bring into the fold.

Written by Nagel on July 6th, 2007 with no comments.
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