Can You Use Your HSA End of Year Statement to File Taxes?

As the end of the year approaches, you may be wondering how your Health Savings Account (HSA) factors into your taxes. One common question that arises is whether you can use your HSA end of year statement to file taxes. The short answer is yes, your HSA end of year statement can be a valuable tool when it comes to filing your taxes.

Here are some key points to keep in mind regarding using your HSA end of year statement for tax purposes:

• Your HSA contributions are tax-deductible: The contributions you make to your HSA are tax-deductible, meaning you can subtract them from your taxable income when filing your taxes.
• Employer contributions are not taxable: If your employer contributes to your HSA, those contributions are not considered taxable income and are not included in your taxable income for the year.
• Interest earned is tax-free: Any interest or earnings from investments in your HSA are tax-free as long as the funds are used for qualified medical expenses.
• Keep receipts for healthcare expenses: While your HSA end of year statement can provide a summary of your contributions and withdrawals, it's important to keep receipts for any healthcare expenses paid for using your HSA funds in case of an audit.
• File IRS Form 8889: When filing your taxes, you will need to fill out IRS Form 8889 to report your HSA contributions and ensure you are in compliance with HSA tax regulations.

By utilizing your HSA end of year statement and staying informed about HSA tax rules, you can make the most of the tax advantages that come with having an HSA.

As you wrap up the year, understanding the role of your Health Savings Account (HSA) in your tax filings can be crucial. Your HSA end of year statement is not only useful but essential for smoothing this process.