# FSA: Are contributions pre-tax dollars? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 14, 2014, 5:26pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345 "2014-02-14T17:26:52Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\ **Post date:** [February 14, 2014, 5:26pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345/1 "2014-02-14T17:26:52Z")
People will say FSA dollars are taken out of your paycheck before taxes. Yet, the FSA sends a statement at the end of the year for tax purposes; however, other pre-tax benefits do not. So, is FSA only pre-taxed once you file your taxes??? What’s the SD? ---
**Author:** ![Doctor\_Jackson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/doctor_jackson/32/32_2.png) [@Doctor\_Jackson](https://boards.straightdope.com/u/Doctor_Jackson)\ **Post date:** [February 14, 2014, 5:58pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345/2 "2014-02-14T17:58:15Z")
Definately [pre-tax](http://taxes.about.com/b/2007/03/20/what-are-the-tax-savings-on-pre-tax-flexible-spending-accounts.htm): > [@](#): > > You (sic) contributions to an FSA plan are set aside pre-tax. “The amount of the benefit is subtracted from your gross wages before the federal income tax withholding is computed,” said Cindy Hockenberry, EA from the National Association of Tax Professionals Not sure why you get a statement unless it is to show you how much of the FSA you actually used, as it is a “use it or lose it” program. That answer is probably employer specific. ---
**Author:** ![SmellMyWort](https://avatars.discourse-cdn.com/v4/letter/s/ea5d25/32.png) [@SmellMyWort](https://boards.straightdope.com/u/SmellMyWort)\ **Post date:** [February 14, 2014, 6:01pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345/3 "2014-02-14T18:01:37Z")
I don’t get a statement from my flexible spending account but it shows up in box 12 on my W2. Contributions are considered pre-tax because they lower your taxable income. Let’s say you contribute $1000 and make $50k. The FSA money is taken out first so as far as the government is concerned you only made $49K and you owe them a little less income tax. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [February 14, 2014, 6:08pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345/4 "2014-02-14T18:08:29Z")
It depends on what you specify. For us, you have the option for either pre-tax or after-tax. You have to make your decision in the beginning of the year, and can’t change it. Just about everyone specifies pre-tax. The only reason to choose after-tax I can think of is if you are in a situation where you get a lot of 1099 income during the year and thus want to have more money withheld so you don’t come up against the limits for not withholding enough. ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [February 14, 2014, 7:59pm UTC](https://boards.straightdope.com/t/fsa-are-contributions-pre-tax-dollars/681345/5 "2014-02-14T19:59:35Z")
> [@Jinx](#): > > People will say FSA dollars are taken out of your paycheck before taxes. Yet, the FSA sends a statement at the end of the year for tax purposes; however, other pre-tax benefits do not. So, is FSA only pre-taxed once you file your taxes??? What’s the SD? I don’t think you have an FSA. It sounds like an HSA. Is the form 1099-SA and/or 5498-SA? Is the W-2 box 12 coded W?