Can I Deduct My HSA Contributions in 2019? - Everything You Need to Know

When it comes to deducting HSA contributions in 2019, the answer is yes, you can usually deduct your contributions on your federal tax return. Health Savings Accounts (HSAs) offer individuals a way to save for medical expenses while reducing taxable income. Here's what you need to know:

Under federal tax laws, contributions made to an HSA are tax-deductible, meaning you can subtract the amount you contribute from your total income when calculating your taxable income. This can lead to significant tax savings, making HSAs a popular choice for many individuals and families.

However, there are some rules and limits to be aware of when deducting HSA contributions:

• Only contributions made with after-tax dollars are deductible
• For 2019, the maximum annual contribution limits are $3,500 for individuals and $7,000 for families
• If you're over 55, you can make an additional catch-up contribution of $1,000
• Employer contributions count towards the annual limit

It's important to keep accurate records of your HSA contributions, including any contributions made by your employer, to ensure you're deducting the correct amount on your tax return. Consulting with a tax professional can also help ensure you're maximizing your HSA tax benefits.

Absolutely, you can deduct your HSA contributions on your federal tax return for 2019, which not only helps you save for medical expenses but also provides a fantastic way to lower your taxable income.