Payroll Deductions

[todpod]

Quick question, I am filling out insurance paperwork for my job. It says I can have it deducuted pre tax or after tax. Any advantage to either.

I am thinking of doing it pretax because it will lower our federal earnings, and in turn will increase our eligibilty for EIC, for 2004. We won't be able to itemize at all so I can't deducte any of what I pay. Am I thinking of this right?

Thanks Todd



BTW, I didn't put this in the tax help thread cause it doesn't effect 2003 taxes.

 

[kermalou]

pre-tax...., because you will be paying taxes on the income then paying the insurance. this way you wont be paying any taxes on that..

i think

 

[AU Tiger]

Pretax. Anytime you can have something taken out pretax, do it. I have insurance, parking, 401K, and flexible spending account taken out of my check currently.

 

[vi edit]

Originally posted by: AU Tiger
Pretax. Anytime you can have something taken out pretax, do it. I have insurance, parking, 401K, and flexible spending account taken out of my check currently.

What he said. Pretax whenever possible.

 

[todpod]

thanks