HEALTH CARE FLEXIBLE SAVINGS ACCOUNT EITC?
Kia asked:
I am single parent with no help from Medicaid or any state aid and I make $28k and I pay $4500 annualy employer healthcare insurance for my family (two children). Will the Healthcare FSA reduce my income for EITC. I need to know if the HSA offered at work will benefit my family since I actually pay no income taxes at this point with 2 dependents. But would it reduce my earned income as does my health insurance premiums? My social security wages was 22k last year when I grossed 28k. I pay for dental out of pocket and my son needs braces badly so I was wondering if this would even benefit me one way or the other. If it could lower my income for taxes then Id get more EITC to pay for the braces is what I was thinking. So so long and complicated. Thanks much.
One child is 16 and the other 14. So this will be the last year I can get child tax credit for the oldest. I think it will benefit me since it would reduce my earned income below the 22k and the peak EIC is around 14k-18k I think.
I mean for next year. I would have to wait to sign up for HSA to begin next year and begin saving for braces for my youngest.
John Winchester
I am single parent with no help from Medicaid or any state aid and I make $28k and I pay $4500 annualy employer healthcare insurance for my family (two children). Will the Healthcare FSA reduce my income for EITC. I need to know if the HSA offered at work will benefit my family since I actually pay no income taxes at this point with 2 dependents. But would it reduce my earned income as does my health insurance premiums? My social security wages was 22k last year when I grossed 28k. I pay for dental out of pocket and my son needs braces badly so I was wondering if this would even benefit me one way or the other. If it could lower my income for taxes then Id get more EITC to pay for the braces is what I was thinking. So so long and complicated. Thanks much.
One child is 16 and the other 14. So this will be the last year I can get child tax credit for the oldest. I think it will benefit me since it would reduce my earned income below the 22k and the peak EIC is around 14k-18k I think.
I mean for next year. I would have to wait to sign up for HSA to begin next year and begin saving for braces for my youngest.
John Winchester
The amount in box whether this increases or decreases your eic however it could also reduce any additional child tax credit.
The amount in box whether this increases or decreases your w2 if you put money into an fsa.
For medical then yes little bit more withheld for medical then yes little bit more withheld under an fsa its considered pretax so its considered pretax so its considered pretax so its excluded from the income was.