FSA- NJ

Forum|Forum|3 years ago
February 21, 2023
3 replies
10 views

flexible spend account

taxpayer and spouse contribute max $2,750 each year pre taxed. Can I write this off with medical ins? State is NJ

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qbteachmt

Level 15

FSA is not insurance. It's a Spending account. They funded it through the employer. It's already accounted for in their W2. It's already pre-tax.

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sjrcpa

Level 15

And Pretax for federal is probably taxable for NJ.

The more I know the more I don’t know.

qbteachmt

Level 15

"And Pretax for federal is probably taxable for NJ"

Which would already be included on the W2, in that case, one of those State-specific clarity listings.

Things handled by/through the employer do not typically get entered again, as if it is part of their private events, if you see it on a tax reporting form already. There are plenty of posts about HSA "not working" where the preparer entered it separately, and it also is on the W2.

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qbteachmt

Level 15

I recall you are a little weak in Payroll issues. I recommend you get someone, or a table or chart, that helps you learn and document for reference all the various Benefit packages like this. Pre-tax, after tax, employer provided only, with or without employee, with or without employer match, available to SE, etc. The same with possible distributions for retirement plans (4001(k), Roth 401(K), SIMPLE IRA, SEP IRA) and Trad IRA, Roth IRA, etc. Everything needs to be looked up, unless you intend to memorize all of it. Make reference charts. Bookmark reference pages.

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qbteachmt

Level 15

FSA falls under "section 125" or Cafeteria Plan. Example:

https://www.basiconline.com/wp-content/uploads/2019/03/Section-125-FSA-White-paper.pdf

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