Any US Federal Tax Experts Here?

[Huntn]

I know if you employer sticks money into your HSA- Health Savings Account, it's tax free, but what if you make your own contributions into your HSA? Is that a dollar for dollar deduction or is it handled as itemized deduction which these days which may not count for much if you are under the standard deduction.
Thanks!

 

[chown33]

I did a search for keywords: irs hsa deduction

This was the top result on DDG:

Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service

www.irs.gov

 

[velocityg4]

You can only contribute your yearly limit. If your employer contributes. You are limited to whatever remains of your yearly contribution.

This contribution reduces your pretax income. So, it doesn’t affect you using a standard deduction or itemized deduction.

You don’t deduct what your employer contributes. As those should be excluded from your W-2.

Note: I’m still studying taxes. I’ve done some minor tax work. But I’m just starting on learning to become an EA.

 

[Macky-Mac]

I know if you employer sticks money into your HSA- Health Savings Account, it's tax free, but what if you make your own contributions into your HSA? Is that a dollar for dollar deduction or is it handled as itemized deduction which these days which may not count for much if you are under the standard deduction.
Thanks!

this is the internet.....we're all experts! about everything!

But yes, if you're qualified, it's dollar for dollar up to your share of the maximum allowed amount, and you report your own contribution on form 8889, so as velocityg4 said above, it's not involved with itemizing.

This isn't about your own taxes is it? Aren't you signed up for medicare? That would mean you're no longer qualified to contribute to your own HSA

 

[Huntn]

this is the internet.....we're all experts! about everything!

But yes, if you're qualified, it's dollar for dollar up to your share of the maximum allowed amount, and you report your own contribution on form 8889, so as velocityg4 said above, it's not involved with itemizing.

This isn't about your own taxes is it? Aren't you signed up for medicare? That would mean you're no longer qualified to contribute to your own HSA

I am on Medicare! However my wife has 2 years to go. I guess I need to look into the details of that. Thanks!

 

[Macky-Mac]

I am on Medicare! However my wife has 2 years to go. I guess I need to look into the details of that. Thanks!

Since you're on medicare and she isn't, I assume she has her own healthcare coverage, and if it's a qualifying "high deductible" healthcare insurance plan, then she can have an HSA.

Since you're not on her health insurance, she'll be limited to the "individual" contribution amount instead of the "family" amount, but there's also a "catch up" contribution that's allowed for people over 55, so she should be able to use that as well

(when you go to verify all this, just tell them "some guy on the internet said so!"......and of course they'll say "OK!!!!"

 

[cthompson94]

No tax expert at all, but I have worked for a bank and credit union. Generally we would suggest to people (we couldn't give tax advice since we were not tax experts) that if they wanted to contribute more to their HSA to do it via their employer since the money from your paychecks would come out pre-tax (as it should be) and if you contribute money into your HSA on your own you have already paid taxes on that money you have put in.

Now if there are specifics that can be done like deductions (I believe there are, but i have always just contributed via my employer to my HSA never from my own funds) or anything while filing taxes to separately account for those funds added post-tax I am not sure. Keep in mind too that HSA accounts can be audited by the IRS and to my understanding HSA and FSA funds are supposed to be pre-tax, but if there are deductions or ways you can report that you added "x" amount then you should be fine.