Can a Sole Proprietor Deduct Spouse's HSA Contributions? - HSA Awareness Article

When you are a sole proprietor, navigating health savings accounts (HSAs) can be essential for your financial planning. One common question that arises is whether a sole proprietor can deduct their spouse's HSA contributions. The short answer is yes, but there are some important factors to consider.

As a sole proprietor, you can make contributions to your own HSA as well as your spouse's HSA, as long as certain conditions are met. Here are some key points to keep in mind:

• Your spouse must be covered under a high-deductible health plan (HDHP) that meets HSA eligibility requirements.
• You can contribute to your spouse's HSA up to the annual contribution limit set by the IRS.
• The contributions you make to your spouse's HSA are considered an above-the-line deduction on your personal income tax return.

It's important to note that while you can deduct contributions made to your spouse's HSA, the overall family contribution limit still applies. This means that the total contributions to both your and your spouse's HSAs cannot exceed the family contribution limit set by the IRS.

By maximizing contributions to both your and your spouse's HSAs, you can benefit from tax savings and have additional funds set aside for qualified medical expenses. Consult with a tax professional or financial advisor to ensure you understand the rules and requirements around deducting your spouse's HSA contributions as a sole proprietor.

As a sole proprietor, understanding how health savings accounts (HSAs) work can greatly enhance your financial strategy. If you're wondering whether you can deduct your spouse's HSA contributions, the answer is yes! However, make sure your spouse is enrolled in a qualified high-deductible health plan (HDHP) to ensure eligibility.