How Much is the HSA Tax Deduction?

If you're considering opening a Health Savings Account (HSA), one of the advantages you may be wondering about is the tax deduction. The HSA tax deduction allows you to lower your taxable income by contributing to your HSA account. Let's break down how much you can deduct:

When you contribute to your HSA, the amount is deducted from your taxable income, which reduces the amount of income subject to taxation. Here's how the HSA tax deduction works:

• For 2021, individuals can deduct up to $3,600 in contributions to their HSA, while families can deduct up to $7,200.
• If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
• Contributions made by your employer are excluded from your taxable income.
• The HSA tax deduction is an
  

  If you're considering opening a Health Savings Account (HSA), you're likely curious about the benefits it offers, including the significant tax deduction. The HSA tax deduction permits you to effectively lower your taxable income through contributions to your account, making it a financial health booster!