Deductions & credits

Contributions to your HSA reduce your taxable income as the contributions show up as deductions on line 25 - "Health savings account deduction" - of your Form 1040 in calculating your taxable income.  Any amount you take out of your HSA and use for qualified medical expenses are also tax free to you.  So the tax benefit is associated with the gross contribution, not the "net" after distributions.

Tom Young



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