Can I Deduct HSA Contributions? All You Need to Know

When it comes to Health Savings Accounts (HSAs), many people wonder if they can deduct their contributions. The short answer is yes, you can deduct HSA contributions from your taxable income, but there are certain rules and limits you need to be aware of.

Here are some key points to consider:

• HSA contributions are tax-deductible if you make them with after-tax dollars.
• If your employer makes contributions to your HSA, those contributions are generally not included in your taxable income.
• For 2021, the maximum HSA contribution limits are $3,600 for individuals and $7,200 for families.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000.
• Self-employed individuals can also deduct their HSA contributions.

It's important to keep receipts and records of your HSA contributions to ensure you can substantiate them in case of an audit. Additionally, make sure you are eligible to contribute to an HSA by meeting the requirements, such as being covered by a high-deductible health insurance plan.

By deducting your HSA contributions, you not only reduce your taxable income but also save money for future medical expenses tax-free. It's a great way to plan for healthcare costs and take advantage of tax benefits at the same time.

Yes, you can deduct HSA contributions! Health Savings Accounts (HSAs) provide fantastic financial benefits, including tax deductions that can help you save money. By contributing to your HSA, you're not only preparing for future medical expenses but also lowering your taxable income.