Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses. This is an example of a _____ account.

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29-04-2022
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Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses. This is an example of a _____ account.

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ayokenny2001 ayokenny2001 · Answer 1 · 2022-05-05T17:42:00+02:00

This is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

What is tax?

This is a compulsory levy, impose by government of a country on an individual or business entity.

The primary purpose of taxation is that it allows the government to allocate resources. Government use tax money to support expenses related to building and technology infrastructure.

Hence, this is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

Learn more about tax here : https://brainly.com/question/9437038

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