Tax Playbook · Keep more of each paycheck
FSAs: spend pre-tax
An FSA lets you set aside part of your paycheck before taxes to pay for care. In 2026 a dependent care FSA covers up to $7,500 of child or dependent care costs, and a health FSA covers up to $3,400 of medical costs. If $1,000 goes into an FSA before tax and your combined tax rate is about 25%, you keep about $250 that would have gone to tax. Most plans are use-it-or-lose-it, so plan what you will spend.
Good for: Employees paying for child care, dependent care, or medical costs.
Learn the basics
Recent articles & guides
- Bennie: What is an FSA (2026 guide)
- Kiplinger: FSA contribution limits for 2026
- Marshall+Sterling: 2026 FSA limits and other indexed benefit amounts
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.