Fort Collins, CO (PRWEB) December 10, 2007 -- Many people are rushing to get
a Health Savings Account in place before the end of the year in order to lower
their 2007 taxes. These tax-favored accounts, which have only been available
since January of 2004, can be opened by anyone with a HSA
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. Here are 10 ways Health Savings Accounts offer tax savings:
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 percent 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. All states except four (AL, CA, NJ,
and WI) offer a tax deduction for Health Savings Accounts.
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. A list of HSA
qualified expenses is available from HSA for
America.
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 qualifying high-deductible health insurance
plan to shelter up to $5,650 from federal income taxes. HSA-qualified
health insurance must be in place by December 31, 2007, in order to benefit
your 2007 tax return. 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 independent HSA
administrators.
