A taxpayer pays $2,500 into his employer's available Section 125 plan. During the year they've already made more than $7,000 in wages. How much does this contribution save them in all possible employment- and income-related taxes during the year if they are in the 22% tax bracket? 

Answer rating: 100% (QA)

To calculate the tax savings from contributing to a Section 125 plan we need to cons... View the full answer