Today's Tax Minute

The radio program "Tax Minute" can be heard every weekday morning at 6:25 on WCRN 830 AM.

TAX SAVINGS (1)
This week we're going to be talking about tax savings tips geared towards younger families. The first is to be aggressive if your employer offers a medical reimbursement account, also known as a Flex Plan. This lets you divert part of your salary to an account, which can then be used to pay medical bills. You not only avoid income tax on the money that is set aside in a Flex Plan, but you also avoid social security tax on these earnings which can result in huge savings come tax time. If you get married or divorced or have or adopt a child during the year you can change the amount you're setting aside in a medical reimbursement plan. If you anticipate more medical bills put more money into the account. If you anticipate fewer, you can pull back on your contributions so you don't have to worry about the "use it or lose it" rules. Tune in tomorrow for some more tax savings tips for the younger family.

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