How Does HCRA Reduce Taxes?

The Health Care Reimbursement Account can reduce your taxes by reducing your taxable income. Using this pre-tax account can make a significant difference in your take-home pay.

IMPACT OF HEALTH CARE REIMBURSEMENT ACCOUNT

Calculate how much you will save by participating in HCRA.

A HCRA spending account can save you money by using the pre-tax dollars, but it requires careful planning. Keep in mind that money deducted from your pay and deposited in your Health Care Spending Account must be used during the year for the appropriate expenses. Money left in an account does not carry over to the next year, and it is not refundable to you at the end of the year. In other words, if you don’t use it, you’ll lose it!

Annual Taxable Income:

Annual Deduction for Health Expenses:

View Tax Rate       Federal Taxes: - - Choose One - - 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 36% 37% 38% 38.6%

State Taxes: - - Choose One - - 3% 4% 5%