Is Money I Add to My HSA Tax Deductible?

Yes, the money you contribute to your Health Savings Account (HSA) is tax deductible. This means that the amount you put into your HSA can be deducted from your taxable income, reducing the amount of income subject to taxes.

Contributions to your HSA are tax-deductible whether you make them through payroll deductions or with after-tax contributions. If you contribute to your HSA with after-tax funds, you can then deduct those contributions when you file your taxes, lowering your taxable income for the year.

It’s important to keep in mind 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.

Absolutely! Contributions to your Health Savings Account (HSA) are tax deductible, which means they can help lower your taxable income effectively. This is a fantastic way to save money not just on healthcare expenses but also in taxes.