Is the HSA Deduction Taken Before the Standard Deduction?

Health Savings Accounts (HSAs) are a tax-advantaged way to save for medical expenses. One common question that arises is whether the HSA deduction is taken before the standard deduction when filing taxes.

When it comes to tax deductions, it's essential to know how they interact with each other to maximize your savings. In the case of HSAs and the standard deduction:

• The HSA deduction is an
  

  Health Savings Accounts (HSAs) not only provide a way to save for future medical expenses but also offer significant tax advantages. When you're filing your taxes, the HSA deduction is considered an 'above-the-line' deduction, which means it is calculated and deducted from your total income before arriving at your Adjusted Gross Income (AGI). This is crucial because it enables you to lower your taxable income right away.