It is exactly how Lina stated. You deduct the amount exceeding 7 or so % of your gross income. So, say, if your income is 100K, and you spent 10K on medical expenses, you can deduct 3K ( or 2,5 if it's 7,5%) . FSA is simply a way to save on taxes by putting money into it pre-taxed. You can also put money into it for childcare - same rules apply. HSA work the same way. Many medical insurances with high deductibles allow people to have HSA ( Health spending account)

__________________
Happy New Year to all! Virtual hugs!