HSA Deductions 2018: What Can You Claim?

When it comes to Health Savings Accounts (HSAs), understanding the deductions you can claim is crucial for maximizing your savings. In 2018, there are certain HSA deductions that you can claim on your taxes to lower your taxable income and potentially receive a tax break. Here is a guide to help you navigate the deductions you can claim with your HSA:

1. Contributions: You can claim a deduction for contributions you have made to your HSA during the tax year. These contributions are tax-deductible and can be made by you, your employer, or any other person on your behalf.

2. Qualified Medical Expenses: You can claim a deduction for qualified medical expenses paid out of your HSA. This includes expenses such as doctor's visits, prescription medications, and other eligible medical costs.

3. Annual Contribution Limits: In 2018, the annual contribution limit for an individual with self-only coverage was $3,450, and for individuals with family coverage, it was $6,900. You can claim a deduction for contributions up to these limits.

4. Catch-Up Contributions: If you are age 55 or older, you can make additional catch-up contributions to your HSA. For 2018, the catch-up contribution limit was $1,000. These additional contributions are also tax-deductible.

5. Employer Contributions: If your employer contributes to your HSA, you can also claim a deduction for these contributions. Employer contributions are not included in your taxable income.

By understanding and utilizing these HSA deductions in 2018, you can make the most of your HSA benefits and potentially reduce your tax liability. Be sure to consult with a tax professional or financial advisor for personalized advice on claiming HSA deductions.

Understanding HSA deductions is essential for making the most of your Health Savings Account. In 2018, a variety of tax-deductible contributions can significantly aid in minimizing your overall tax burden.