EBIA to offer Tax Savings Calculator Free Online

October 12, 2004 (PLANSPONSOR.com) - The Employee Benefits Institute of America (EBIA) has announced that it will now offer its online tax savings calculator free of charge.

The calculator shows employees how much they will save in federal tax dollars by making pre-tax contributions to their benefit plans. It also offers a tool that shows the relative tax benefit of participating in an employer-sponsored dependent care assistance program (DCAP) when compared to the dependent care tax credit (DCTC).

The calculator takes into account:

  • Filing status, exemptions, and deduction status.
  • Employee and spousal wages, as well as, other income and adjustments.
  • Eligibility for the earned income credit.
  • The differing impact on FICA savings produced by salary reductions versus 401(k) and 403(b) salary deferrals.
  • The number of dependents for DCAP and DCTC purposes, as well as the number of qualifying children for the child tax credit (CTC).
  • The effect of salary reductions on when the CTC and other exemptions take effect.

The calculator, provided by the Employee Benefits Institute of America, Inc., is available  here .