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 Home < Employees < Health and Welfare Benefits < Flexible Spending Accounts < Tax Considerations
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Because your DepCare FSA and Health FSA contributions are not subject to FICA tax, your future Social Security benefits could be slightly reduced as a result of your participation. Both DepCare and the federal tax credit for dependent care allow you to reduce your income taxes if you pay someone to care for your child or other dependent so that you may work. DepCare reduces your taxable income, thereby reducing the amount of federal, state and FICA tax you pay. The federal tax credit reduces the total federal income tax you pay. The amount you save on taxes will vary depending on the method you use, your salary, your expenses, and your tax status. For a complete discussion of DepCare FSA and the federal tax credit, see the DepCare Summary Plan Description [PDF]. |
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