Curt's Tax Client, Terry, Is Employed at a Large Company

question 126

Essay

Curt's tax client, Terry, is employed at a large company that offers health care flexible spending accounts to its employees. Terry must decide at the beginning of the year whether he wants to put as much as $2,700 of his salary into the medical flexible spending account. Terry has excellent insurance through the company and is very healthy. He does not expect to have any medical expenses during the year. Terry does not itemize deductions. Should Curt recommend that Terry put the maximum in his health care flexible spending account? Why or why not?

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Definitions:

Ingroup Bias

A tendency to favor members of one's own group over those from external groups.

Self-Enhance

Engaging in behaviors or adopting beliefs that serve to increase one's own esteem and positive self-view.

Evolutionary Perspective

A view that humans are a species of animal and that their social behavior is a consequence of particular evolved adaptations.

Self-Esteem

A person’s evaluation of his or her value or self-worth. The level of positive feeling one has about oneself.