I need confirmation that I'm eligible for a deduction based on the IRS's definition of an HDHP vs my POS with HSA with my employer
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I need confirmation that I'm eligible for a deduction based on the IRS's definition of an HDHP vs my POS with HSA with my employer

 
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I need confirmation that I'm eligible for a deduction based on the IRS's definition of an HDHP vs my POS with HSA with my employer

An HDHP (High Deductible Health Plan) is an insurance plan that

  • A higher annual deductible than typical health plans, and
  • A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts, but don’t include premiums.

HDHP coverage can be “self-only”, covering only the eligible individual, or “family” coverage, coverage the eligible individual and at least one other individual. Family coverage is typical on the taxpayer’s spouse and dependent but may include others.

HDHP Requirements

Self-only coverage

Minimum annual deductible

$1,300

Maximum annual deductible and other out-of-pocket expenses*

$6,550

Family coverage

Minimum annual deductible

$2,600 

Maximum annual deductible and other out-of-pocket expenses*

$13,100

***

Note that your HSA is independent of your employer and belongs to you. The main requirement to have an HSA is that you are covered by an HDHP, whether it is provided by your employer or gotten by you on the open market (or even through the ACA marketplace).

If you or your employer make contributions (like through a payroll deduction plan), then this amount is reported on your W-2 in box 12 with a code of W. Normally this amount is also removed from Wages in boxes 1, 3, and 5 on your W-2 - this is how your contributions are made non-taxable, not through an explicit deduction.

Only contributions made outside of your employer directly to the HSA are deductible on your tax return, on Line 25 of the 1040.

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