Pretax dollars to pay for health care insurance

Paying for College
1

<p>I obtain health care insurance from my employer but they pay for only a portion of the cost. The remainder is automatically deducted from my paycheck each week using pretax dollars. I have been unable to find guidance to determine if this is considered untaxed income. FAFSA directions do not list this as an example. Are pretax dollars to pay for health care insurance considered untaxed income by the FAFSA?</p>

2

<p>No, pre-tax contributions for retirements accounts are added back in, but not for health insurance. The former is considered a choice, health insurance is not considered a choice.</p>

3

<p>That sounds like a Flexible Spending Account. Not included for FAFSA.
<a href=“https://fafsa.ed.gov/fotw1314/help/faadef33.htm”>https://fafsa.ed.gov/fotw1314/help/faadef33.htm&lt;/a&gt;&lt;/p&gt;

4

<p>Our health insurance was also paid using pretax dollars, I believe. It was NOT a flex spending account. </p>

5

<p>Most everyone with health insurance through an employer has employee contributions and they are pre-tax and not reportable on fafsa. The OP isn’t talking about a flex spending account. </p>

6

<p>Annoying dad is correct. Pre-tax withholdings to pay the employee’s share of health insurance is never reported as income. FSA’s are pre-tax dollars withheld from an employee and then used to reimburse the employee for medical expenses as they are incurred.</p>

<p>My husband has pre-tax money withheld for his share of his health insurance through work. I have an FSA in addition to my health insurance, and I can then use my FSA for either his or my medical expenses.</p>

7

<p>I don’t believe this is about a FSA (flexible spending account). This is pretax money used to pay for health insurance. I do NOT believe this is income either…as annoyingdad said. </p>

<p>Flex spending account money is not income either as it must be used for medical or child care expenses. Use it or lose it.</p>