Health Savings Account (HSA) Deduction
You may qualify to claim a tax deduction for contributions you, or someone other than your employer, make to your HSA.
The new tax law didn’t change the treatment of the HSA deduction. Note: There are annual inflationary adjustments to the deductibility limitations.
An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual.
Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Employer contributions aren’t included in income. Distributions from an HSA that are used to pay qualified medical expenses aren’t taxed.
The amount you or any other person can contribute to your HSA depends on the type of high deductible health plan (HDHP) coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual.
For 2017, if you have self-only HDHP coverage, you can contribute up to $3,400. If you have family HDHP coverage, you can contribute up to $6,750.
For 2018, if you have self-only HDHP coverage, you can contribute up to $3,450. If you have family HDHP coverage, you can contribute up to $6,900.
The new tax law didn’t change the treatment of the HSA deduction.
Note: There are annual inflationary adjustments to the deductibility limitations.
How will this affect me?
For examples about eligibility and limitations on HSA deductions, see IRS Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans.