The medical spending account calculator will show you what you will save by paying for your out-of-pocket expenses with pre-tax dollars rather than after tax. This calculator will calculate for you your tax savings based on the tax bracket that you are in and the amount of premiums (ie. medical, dental, vision) along with out-of-pocket medical expenses that you predict you will have for the benefit year.
The dependent care calculator will allow you to determine whether your tax savings is greater by participating in the dependent care spending account or taking the federal tax credit (Form 2441) for your dependent care expenses.
The dependent care spending account allows for a maximum of $5,000 of dependent care expenses to be reimbursed pre-tax regardless of the number of dependents that you may have. The federal tax credit allows for a credit of $3,000 for one child and $6,000 for two or more. Each benefit is calculated on a calendar year and has advantages based on income and number of dependents. We hope the calculator will help you to determine which benefit is better for your family. Finally, if you have more than one child and choose to receive $5,000 of reimbursement through the dependent care spending account, you may also be able to receive a maximum of $1,000 in the federal tax credit. If you have questions you may want to contact your tax advisor.