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March 23, 2009
Health Savings Accounts at Tax Time
Health Savings Accounts are a great way to pay for your health care when you have a qualifying high deductible health insurance plan. One big benefit is that any money you deposit into your Health Savings Account is deductible on your federal tax return. It is also deductible on all but 4 state tax returns.
If you have an HSA-qualified health insurance plan, but you haven't fully funded your Health Savings Account for 2008, you can still deposit money in it before filing your taxes!
The catch is that you must have opened the HSA in 2008, you can't open it now and try to take the deduction for 2008. If you opened an HSA in 2008 but didn’t fully fund it, and you don't have some other tax deductible place to put it (or you maxed them all out) remember that the upper limit for 2008 for an individual plan is $2900 and for a family, $5800. DON’T exceed the limits. HSA contributions and disbursements are reported to the Feds.
So if you didn't open it last year, are bummed that you are missing out on this easy, above the line deduction and you are eligible, open it now. Find an HSA Administrator and get a head start on your 2009 deductions. And, best of all, at the end of the of every year it's not "use it or lose it" – it rolls over.
Learn more about Health Savings Accounts and how you can get an HSA health insurance plan at HSA for America.
Posted by Wiley Long at March 23, 2009 10:31 AM