Deductions & credits

One tl;dr and one additional tip.

 

tl;dr -- the income reported as HSA is already subtracted from your box 1 taxable wages, so you don't pay taxes on it.  It's not listed as a separate deduction because it is already not included in your taxable income.  If you think box 1 is wrong, you need to talk to your employer.

 

Tax tip: The HSA limit for 2019 was $7000 plus $1000 catch-up provision if you are 55 or over and have a family plan, which you must to contribute $7884 without causing an error.  Now, if you want an additional deduction and to save more for the future, your spouse may be able to contribute an additional $1000 to an HSA in their name if they are also age 55 or over.

 

If you and your spouse are covered by a family HDHP and your spouse does not have any other medical coverage, then your spouse is treated as if she is also covered by an HDHP even if the plan is in your name.  That means your spouse can contribute to an HSA.  Your overall limit for 2020 is $7100 plus $1000 for each person age 55 or over.  You can split the $7100 any way you want but the $1000 extra must be contributed to an account in the specific person's name.  So you could contribute $8100 for 2020, and your spouse $1000, but you can't contribute $9100.  Got it?   

 

I like maximizing HSA contributions because it's basically a Super IRA.  After age 65, you can withdraw for any reason and pay regular income tax like an IRA, or you can withdraw it for medical expenses (like part D premiums and co-pays) and pay no tax at all.  

 

If your spouse is 55 or over and you want to maximize your HSA opportunities, your spouse can open an HSA in their name at a local or online bank, probably for a small monthly fee.  You can invest in a diversified mutual fund to get a better growth than pitiful savings account interest.  Just be aware that, if you and your spouse are both over 55, your personal maximum is each $8150 (for 2020) and your overall family maximum is $9150.  (It's too late to make a retroactive contribution for 2019.)