Pre-tax Deductions

Pre-tax deductions are taken out of an individual’s income before any Federal, State and local taxes are deducted and can be located on the individual’s paystubs.

Some health insurance premiums paid by the employee This may include premiums paid for dental and vision, or Accidental health benefit premiums AFLAC

Some employee contributions to 401(k) and 403(b) retirement plans

Contributions to deferred compensation plans

Employee contributions to a savings account for medical expenses Health Savings Account (HSA) Flexible Spending Accounts (FSA)/Cafeteria Plan

Employee contributions to dependent care accounts

Other uncommon Fringe Benefits Exclusions Meal reimbursements Educational Assistance Adoption Assistance Employee Discounts Group-term life insurance

Pre-tax deductions cannot be claimed on an individual’s tax return as this expense has already been excluded from the individual’s taxable income. Therefore, tax documents will not include verification of pre-tax deductions. Pre-tax deductions can be found on paystubs. Taxable wages can also be found in Box 1 of the most recent W-2 or taxable wages are reported on Form 1040 to determine the amount of the earnings that should be included.

Enter in gross wages, and

Only enter deductions allowable under MAGI guidelines

The eligibility system will subtract the deductions from the gross income