Deductions & credits

Yes, contributing to your Health Savings Account will reduce your taxable income for the year.  You will enter it into TurboTax and it will take care of it.  Just be sure that the TOTAL contributions for the year don't exceed $3300 for a self-only policy or $6550 for a family policy ($1000 more if you are over age 55).

For the future, it is usually better to contribute to the HSA from your paycheck through your employer.  Besides saving income tax, it also usually saves Social Security and Medicare taxes.

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