Professionals in the workplace see a great benefit, particularly when involving taxes, and if you’re strategic about it, you can come out on top. The benefit, of course, I’m talking about is the “FSA,” or flexible spending account typically used for out-of-pocket medical costs.
What you have to understand is that FSA is technically part of your income. If you don’t “put it away somewhere,” it legally can be counted as taxable, possibly affecting your return (perhaps positively, perhaps negatively).
The key benefit with the FSA is its flexibility. You can do what you want with it, when you want with it, before the IRS ever gets your tax return. Additionally, there’s one awesome extra with the FSA that you shouldn’t forget about:
What does that mean? Simply put, there may be a chance that you might not use all of what’s on the FSA in any given year. Back in 2013, the IRS and United States Treasury made it possible for employees to carry over as much as $500 to the next benefit year. The added benefit, though, was a bit too late for 2014, but guess what: you get this for 2015. Take advantage of these tax benefits as well as this notice of something spectacularly easy, leading you to a nice 2015 tax refund.
Yes, those 2-hour tax returns and reviews make their waves and get people to turn their heads. It’s all about convenience. In addition, with that fantastic convenience, you get the possibility of carrying over an FSA and putting more money in your pocket.
You can’t beat that.