Can You Subtract HSA Contributions from Your Income?

Yes, you can subtract HSA (Health Savings Account) contributions from your income, offering significant tax advantages. HSA contributions are tax-deductible, meaning they can reduce your taxable income, providing you with potential savings on your tax bill.

When you contribute to your HSA, the amount you contribute is deducted from your gross income before taxes are calculated. This reduction in taxable income can lower your overall tax liability and potentially increase your tax refund.

It's important to note that there are limits to how much you can contribute to your HSA each year. For 2021, the 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.

Additionally, HSA contributions made by your employer are excluded from your income, further reducing your taxable income.

Absolutely! You can subtract your HSA (Health Savings Account) contributions from your income, providing great tax benefits. This means any contributions you make can help lower your taxable income, which could lead to savings on your tax bill.