# Pre-Tax Deductions **URL:** \ **Category:** Factual Questions\ **Created:** [November 29, 2011, 4:48pm UTC](https://boards.straightdope.com/t/pre-tax-deductions/604465 "2011-11-29T16:48:57Z")\ **Posts on this page:** 4\ **Page:** 2
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [December 1, 2011, 4:18pm UTC](https://boards.straightdope.com/t/pre-tax-deductions/604465/21 "2011-12-01T16:18:56Z")
> [@What\_the](#): > > Your employer (you if you are self-employed) has to offer either a Health Savings Account (HSA) or a flexible spending account (FSA). Cite? My husband’s prior employer didn’t offer either, as far as he knew (then again, he wasn’t in their health insurance because mine was better and cheaper). I admit I could be wrong about it being mandatory, of course. That’s a separate thing, however, from the health insurance premium the OP was asking about. The flex spending is also better than planning on deducting your out-of-pocket, for the same “must itemize, only amounts over 7.5%” rules. The danger being, of course, that you overwithhold and wind up losing the money at the end of the year. ---
**Author:** ![GreenElf](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@GreenElf](https://boards.straightdope.com/u/GreenElf)\ **Post date:** [December 1, 2011, 4:41pm UTC](https://boards.straightdope.com/t/pre-tax-deductions/604465/22 "2011-12-01T16:41:05Z")
> [@Mama\_Zappa](#): > > You don’t really do the deduction at all. I just checked mine from last year, and found that Box 12 shows 3 lines: > C: taxable group term life > D: pretax 401(k) deferrals > AA: After-tax 401(k). > > I have a difference between my taxable salary and my social security salary (box 1 and box 3), which reflects my flex spending money and (I think) my health insurance premiums. The difference is a little more than those two figures, however. > > Anyway - for regular tax, it’s basically as if the insurance payment never happened. I understand that your box 1 and 3 would differ by the D. pretax 401(k), but why would it differ by taxable insurance premiums? I’d think those amounts would be included in box 1 taxable income and perhaps noted in Box 14. ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [December 1, 2011, 4:52pm UTC](https://boards.straightdope.com/t/pre-tax-deductions/604465/23 "2011-12-01T16:52:45Z")
> [@GreenElf](#): > > I understand that your box 1 and 3 would differ by the D. pretax 401(k), but why would it differ by taxable insurance premiums? I’d think those amounts would be included in box 1 taxable income and perhaps noted in Box 14. Insurance premiums are not always taxable. Section 125 cafeteria health plans are specifically set up so that the premiums are withheld pretax, and the amount of the premiums is not taxable income. See [here](http://en.wikipedia.org/wiki/Cafeteria_plan) for an explanation. The wikipedia article links to the IRS website, but the IRS explanation is a lot harder to follow. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [December 1, 2011, 7:25pm UTC](https://boards.straightdope.com/t/pre-tax-deductions/604465/24 "2011-12-01T19:25:29Z")
> [@Mama\_Zappa](#): > > Cite? My husband’s prior employer didn’t offer either, as far as he knew (then again, he wasn’t in their health insurance because mine was better and cheaper). I admit I could be wrong about it being mandatory, of course. > > That’s a separate thing, however, from the health insurance premium the OP was asking about. > > The flex spending is also better than planning on deducting your out-of-pocket, for the same “must itemize, only amounts over 7.5%” rules. The danger being, of course, that you overwithhold and wind up losing the money at the end of the year. My apologies… I overlooked that the question was about the premium itself. FWIW, in most cases if the employer has a plan that allows the premium to come out before taxes he may very well have an HSA or an FSA. [Previous page](https://boards.straightdope.com/t/pre-tax-deductions/604465.md?page=1)