If I use after-tax dollars to fund an HSA, do I get the tax back for those dollars? Federal and State? Does this require a different form?

[Opus 17]

You get a tax deduction that reduces your federal taxable income, which should also flow through to the state taxable income.  In Turbotax, your employer/employee contributions are captured from your W-2.  Later in the HSA interview, you are asked if you made additional after-tax contributions.  The employer/employee contributions go on line 9 of form 8889 and the after-tax contributions go on line 1 of the same form.  As long as your total contributions are equal or less than your annual limit, and you are enrolled in a qualified insurance plan, you will get a tax deduction for the after tax contributions.

[louiep3]

Thanks for the clear and concise answer

[dpjarvis25]

I am retired so I no longer have employer health plan.  I have medicare, and Veteran's health coverage.

So what happens if I do not have a qualified health plan?

[ThomasM125]

Premiums you pay for health coverage is deductible, including Medicare, as a medical expense itemized deduction. It will only benefit you though to the extent your total medical expenses are more than 7.5% of your adjusted gross income. Also, you need to benefit from itemizing deductions as opposed to taking the standard deduction for it to benefit you on your federal tax return.

Medicare insurance premiums are picked up automatically as medical deductions once you enter in your social security income off of your SSA-1099 form. Any additional health insurance premiums you pay that aren't reported on your SSA-1099 form would be entered in the Deductions and Credits section of TurboTax, and then Medical and then Medical Expenses.

@dpjarvis25 

[dpjarvis25]

Hello,

I am no longer on company medical but I still have HSA account.  This year I put a sum into the HSA bank to cover my medical.  When I filled out my tax form I was charged tax on the amount that I put into my account.  I just want to know why I am being taxed on those funds that were paid on post tax money?

[KeshaH]

To qualify to make contributions to an HSA you have to be covered under a high deductible health plan along with other requirements. You mentioned you're no longer on your company's medical plan, but do you still have this type of coverage outside of your company's plan? If not, you won't be able to take a deduction for the contributions made and you'll be penalized for excess contributions.