FSA Calculator
Use this FSA Calculator (Flexible Spending Account Calculator) to estimate your tax savings when contributing to a healthcare or dependent care FSA. Simply enter your income, expected eligible expenses, and tax information to see how much you can save by reducing your taxable income.
💰 FSA Tax Savings Calculator 2025
Calculate how much you can save on taxes by contributing to a Flexible Spending Account. Get instant results for healthcare and dependent care FSA benefits.
📊 Your Income Information
💳 FSA Contribution Planning
🏥 Estimated Annual Expenses
📈 Your Personalized FSA Savings Report
✅ Why FSA Makes Sense For You
Smart Financial Planning: By contributing to an FSA, you reduce your taxable income and pay for necessary expenses with pre-tax dollars.
Immediate Savings: FSA contributions are deducted from your paycheck before taxes, which means you save on federal income tax, state income tax, and FICA taxes (Social Security and Medicare).
⚠️ Important Reminders:
Use-It-Or-Lose-It Rule: FSA funds must be used by the end of the plan year. Some employers offer a $660 carryover or 2.5-month grace period for 2025.
Annual Election: You must re-elect FSA contributions each year during open enrollment. Plan carefully based on your expected expenses.
FSA Calculator Use
Flexible Spending Accounts (FSAs) allow employees to contribute pre-tax income toward eligible medical or dependent care expenses. This calculator helps you:
- Estimate your potential tax savings
- Decide how much to contribute
- Plan ahead for healthcare or dependent care costs
- Understand the impact on your take-home pay
How the FSA Calculator Works
When you contribute to an FSA, your taxable income is reduced. This results in lower federal income tax, FICA (Social Security and Medicare) tax, and sometimes state income tax.
Input Fields:
- Annual Gross Income
- FSA Contribution Amount
- Filing Status (Single, Married, etc.)
- Estimated Tax Rates:
- Federal
- FICA (usually 7.65%)
- State (optional)
Output:
- Total Estimated Tax Savings
- Adjusted Taxable Income
- Net Benefit from FSA Contribution
Example Calculation
Let’s say:
- You earn $60,000/year
- You plan to contribute $2,500 to a healthcare FSA
- Your tax rates are:
- Federal: 22%
- FICA: 7.65%
- State: 5%
Your estimated tax savings:
Total tax rate = 34.65%
$2,500 x 34.65% = $866.25 saved per year
Frequently Asked Questions
What happens if I don’t use all the money in my FSA?
Most FSAs follow a “use-it-or-lose-it” rule. Unused funds may be forfeited at the end of the plan year. Some employers offer a grace period or allow a limited carryover.
How much can I contribute to an FSA in 2025?
For 2025, the IRS contribution limit for a healthcare FSA is $3,200 (subject to change). Check with your employer for exact limits.
Can I use FSA funds for over-the-counter items?
Yes, many over-the-counter (OTC) medications and products are FSA-eligible. Always verify eligibility before purchase.
Related Calculators
- Dependent Care FSA Calculator
- Healthcare FSA vs HSA Comparison Tool
- FSA Contribution Planner
- FSA Eligible Expense Estimator
Summary
An FSA is a smart way to reduce your taxable income and prepare for out-of-pocket expenses. Use our FSA Calculator to make informed decisions, maximize savings, and stay within contribution limits.