Page 8 - ARCO Construction 2015 Benefits Guide
P. 8
Example Examples of FSA
Bob and Jane’s combined gross income is $60,000. They have two children Eligible Expenses
and ile their income taxes jointly. Since Bob and Jane expect to spend Healthcare Spending
$1,500 in adult orthodontia and $2,800 for daycare next year, they decide to Account
direct a total of $4,300 into their FSAs. z Doctor’s visit copays
Without FSAs With FSAs z Prescription drug copays
Gross income $60,000 $60,000 z Medical and Dental deductibles
FSA contributions $0 $4,300
Gross income $60,000 $55,700 z Hearing aids
Estimated taxes z Eye glasses
Federal -$9,000* -$8,355 * z Contacts
State -$1,800** -$1,671 **
FICA -$4,590 -$4,261 z Contact lens solution
After-tax earnings $44,610 $41,413 z Dental services
Eligible out of pocket medical and dependent -$4,300 0
care expenses z Orthodontia
Remaining spendable income $40,310 $41,413 z Laser vision correction surgery
Annual spendable income increase $1,103
Monthly spendable increase $91.92 Dependent Care Spending
* Assumes standard deductions and four exemptions Account
** Varies, assume 3% z Cost of child or adult day care
The example is for illustrative purposes only. Every situation varies and we recommend that you
consult
a tax advisor for all tax advice. z Nursery school
Dependent Care FSA z Preschool (excluding
kindergarten)
The Dependent Care FSA lets you use pre-tax dollars towards qualiied
dependent care. The maximum amount you may contribute to the Eligible Dependent
Dependent Care FSA is $5,000 (or $2,500 if married and iling separately) z Tax dependent child under age
per calendar year. 13
z Tax dependent spouse,
parent, or child unable to
care for themselves
ARCO/Murray/GMA 8
Bob and Jane’s combined gross income is $60,000. They have two children Eligible Expenses
and ile their income taxes jointly. Since Bob and Jane expect to spend Healthcare Spending
$1,500 in adult orthodontia and $2,800 for daycare next year, they decide to Account
direct a total of $4,300 into their FSAs. z Doctor’s visit copays
Without FSAs With FSAs z Prescription drug copays
Gross income $60,000 $60,000 z Medical and Dental deductibles
FSA contributions $0 $4,300
Gross income $60,000 $55,700 z Hearing aids
Estimated taxes z Eye glasses
Federal -$9,000* -$8,355 * z Contacts
State -$1,800** -$1,671 **
FICA -$4,590 -$4,261 z Contact lens solution
After-tax earnings $44,610 $41,413 z Dental services
Eligible out of pocket medical and dependent -$4,300 0
care expenses z Orthodontia
Remaining spendable income $40,310 $41,413 z Laser vision correction surgery
Annual spendable income increase $1,103
Monthly spendable increase $91.92 Dependent Care Spending
* Assumes standard deductions and four exemptions Account
** Varies, assume 3% z Cost of child or adult day care
The example is for illustrative purposes only. Every situation varies and we recommend that you
consult
a tax advisor for all tax advice. z Nursery school
Dependent Care FSA z Preschool (excluding
kindergarten)
The Dependent Care FSA lets you use pre-tax dollars towards qualiied
dependent care. The maximum amount you may contribute to the Eligible Dependent
Dependent Care FSA is $5,000 (or $2,500 if married and iling separately) z Tax dependent child under age
per calendar year. 13
z Tax dependent spouse,
parent, or child unable to
care for themselves
ARCO/Murray/GMA 8
