Re: Cafeteria Flex Plan 125
Agreed, your posting is unclear so you need to calarify it.
Just FYI, a Section 125 Cafeteria plan uses pretax dollars or makes the amount you put towards the plan non-taxable for income tax purposes. It also has the effect of lowering your adjusted gross income (AGI), thereby giving you a favorable effect on those items that are AGI dependent. I do believe that the full amount of wages is taxable for Social Security and Medicare purposes, unless you exceed the Social Security threshhold, then Social Security wages, as represented on your W-2, will max out at the threshhold, which is getting near $100,000 these days.
Re: Cafeteria Flex Plan 125
Hi,
I will try to clarify...I do have medical insurance for myself and my family.
I would use the cafeteria Flex plan 125 for things that medical insurance doesnt cover like dental expenses,crowns, dental bridges,eye glasses,ect...
My question is how does this affect me when I make my taxes for next year.
Will I have to repay the taxes I saved during the year on the Cafeteria plan 125?? THANK YOU FOR YOUR IMPUT
Re: Cafeteria Flex Plan 125
Quote:
Quoting
verde
Hi,
I will try to clarify...I do have medical insurance for myself and my family.
I would use the cafeteria Flex plan 125 for things that medical insurance doesnt cover like dental expenses,crowns, dental bridges,eye glasses,ect...
My question is how does this affect me when I make my taxes for next year.
Will I have to repay the taxes I saved during the year on the Cafeteria plan 125?? THANK YOU FOR YOUR IMPUT
You pay for the cafeteria plan with pre-tax dollars. Therefore those dollars do not show up in your gross wages on your W2, and are never subject to income tax. Therefore there is nothing to "repay".
That has absolutely no effect whatsoever on dependency exemptions or child tax credits. Any impact it has on your tax return will be a positive rather than a negative impact.
Re: Cafeteria Flex Plan 125
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Re: Cafeteria Flex Plan 125
How does flex plan 125 affects our Social Security?
Re: Cafeteria Flex Plan 125
Quote:
Quoting
BenCord
How does flex plan 125 affects our Social Security?
It has no effect on social security.