are HSA contribution tax deductible during my self-paid COBRA continuation of my HDHP?

So, I understand that although under COBRA, since I will still be in a HDHP, I am eligible to make HSA contribution (up to the allowed yearly maximum). if this is correct?

as long as the COBRA insurance is a high-deductible plan you are correct.

 

 

 

will my HSA contributions while on COBRA be tax-exempt? what do you mean?  you get a tax deduction for the contributions to an HSA plan (form 8889).  you can not deduct any expenses paid through the HSA. so only the portion, if any, of COBRA premiums that are not paid through the HSA would be an eligible medical expense deductible on schedule A even if self-employed. When you're self-employed, the Internal Revenue Service does allow you to write off qualifying medical insurance premiums as self-employed health insurance because to qualify, the insurance plan must be created under your trade or business name. COBRA coverage continues your existing coverage under your previous employer's plan. Therefore, because you didn't create the policy under your self-employed business name, you can't include the COBRA insurance premiums you pay as part of the self-employed medical insurance deduction.

 

If so, do I claim the tax-exemption when I file my tax return next year? Will this be possible, even if I do not itemize deductions?  the deduction for HSA goes on schedule 1 (2020 who knows what form in 2021)  and is a deduction to arrive at adjusted gross income which means you do not have to itemize to get the benefit but you do need to have income in excess of the standard deduction. to get a tax benefit.  

 

HSA contributions made through payroll deduction or recorded on your W-2 and captured automatically. Later in the program, there is a place to enter additional HSA contributions that you make out of pocket.

 

Incidentally, COBRA insurance premiums are one of the things that you are allowed to pay for from an HSA.  If you want, you can deposit money in the HSA and then withdraw it the next day to reimburse your COBRA premiums make your premiums tax free.  You can’t take a itemized tax deduction for premiums that you pay from the HSA, but you will likely get greater tax savings than paying the premiums with after-tax dollars and trying to take the medical expense deduction, because of the limitations and threshold on the itemized deduction for medical expenses.

Thanks! so, I understand that: 

 

1. any HSA contributions I make myself (outside any payroll and W2) will still be tax-exempt (regardless of whether I take itemized or standard deduction), correct? if so, where exactly in turbotax to enter such selfpaid HSA contributions? 

 

2. when I pay for the COBRA insurance premiums, I can either: (a) pay through my regular after-tax money and then try to get these premiums tax-exempt through the medical expenses part of itemized deductions (which means a few limitation exist), or (b) pay through my existing HSA funds which were never taxed (and obviously in this case can not ask for any itemized deductions for these amounts). correct? 

 

Thanks again!