Oh, some clarification.

You don't subtract the 7.5% from your total. Just enter the total in TurboTax and it will do the 7.5% deal for you.

For the FSA...here's how it works:

Add up everything YOU paid out-of-pocket for medical expenses (including therapy). Then subtract from that number the amount that was reimbursed from your FSA account.

Example -

Paid $10,000 for surgery
Insurance reimbursed $5,000
Had $2,000 in your FSA account that you used to pay for it

That leaves $3,000 that you paid, by yourself, without insurance reimursement or FSA.

Put that $3,000 number on the line for medical expenses. Turbo Tax will take care of the rest.

FSA money ends up being just like insurance reimbursement in a way. Because that came out pre-tax so you can't deduct it again.

Does that make a little bit of sense??

(Sorry I'm not so great with explaining thing sometimes!)