On January 1, 2020, Michelle, age 35, started a new job, and her new employer offers a healthcare flexible spending account (FSA). Michelle decided to contribute the maximum amount to her healthcare FSA. In 2020, Michelle is in the 32% marginal tax bracket. What is Michelle’s tax benefit (tax savings) as a result of her FSA contributions? Assume that Michelle spends all of her healthcare FSA funds on eligible medical expenses.

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