(PRWEB)
April 12, 2005 -- 10 Ways Health Savings Accounts Offer Tax Savings.
Health Savings Accounts are helping individuals save thousands of dollars
on their income taxes. These tax-favored accounts, which have only been
available since January of 2004, can be opened by anyone with a qualifying
high-deductible health insurance plan. Once you open an account, you
can place tax-deductible contributions into it, which can then be used later
to pay medical expenses. Any money not used grows tax-deferred, like
an IRA.
Health Savings Accounts offer many tax advantages over traditional health insurance arrangements.
A more detailed explanation of this list of tax deductions can be seen at HSA for America.
1) Reduce your federal income taxes. Regardless of your income level
or how your income was earned, any money you deposit into your Health Savings
Account is considered an above-the-line" deduction, giving you a 100%
write-off against adjusted gross income.
2) Reduce your adjusted gross income, helping you to qualify for other lucrative
tax breaks tied to overall income.
3) Reduce your state income taxes.
4) Tax-deferred growth. Like funds in an IRA, the money in your account
grows free from federal taxes.
5) Pay for dental expenses with pre-tax dollars.
6) Pay for vision care with pre-tax dollars.
7) Pay for alternative care with pre-tax dollars, including chiropractic,
acupuncture, homeopathy, ayurvedic medicine, herbal medicine, or any number
of other so-called alternative treatments.
8) Pay for aspirin, bandages, cold medicine, and other household medical expenses
with pre-tax dollars.
9) Pay Medicare expenses with pre-tax dollars, including Medicare premiums,
deductibles, copays, and coinsurance.
10) Pay for long-term care insurance with pre-tax dollars.
A Health Savings Account
(HSA) enables anyone with a HSA-qualified
high-deductible health insurance plan to shelter up to $5,250 from federal
income taxes. By reducing your adjustable gross income, enabling you
to pay for medical expenses with pre-tax income, and through tax-deferred
growth, HSAs can reduce your income taxes in at least 10 ways.
About HSA for America:
HSA for America is a nationwide brokerage firm specializing
in individual and family health insurance plans that are qualified to work
with Health Savings Accounts. HSA for America represents many different insurance companies, offers instant
quotes, online applications, and comparisons of HSA
administrators. HSA for America provides this information as a quick reference, and it is NOT our intention
to offer or provide tax advice.
