How does it affect my taxes if I have a high deductible health care plan?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
zkmg01
New Member

How does it affect my taxes if I have a high deductible health care plan?

How does it affect my taxes if I have a high deductible health care plan and also a health savings account?
1 Reply
JulieCo
New Member

How does it affect my taxes if I have a high deductible health care plan?

The primary tax benefits of an HDHP are largely because of the benefits of having a Health Savings Account (HSA).

Benefits of an HSA

  • You can claim a tax deduction for contributions you make that are not pre-tax or made by your employer even if you don’t itemize your deductions on Schedule A.
  • Contributions made on your behalf by your employer, including any pre-tax contributions you make through a cafeteria plan, are generally not taxable.
  • Unused contributions remain in your account from year to year
  • Interest earned on the account is usually tax-free
  • Distributions used to pay for qualified medical expenses are tax-free.
  • Your account stays with you even if you leave your employer

Qualifying for an HSA

You must have a high deductible health plan (HDHP). An HDHP has a higher deductible than most health plans, and a maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you pay. You can set up an individual (one person) or a family (more than one person) coverage plan.  

For 2017, the maximum contribution to an HSA is $3,400 for an individual plan or $6,750 for a family plan. This is the combined contribution from both you and your employer.

If you're 55 or older, you're allowed to contribute up to $1,000 more for a maximum of $4,400 (individual) or $7,750 (family).

Here is more information on HSAs:

https://ttlc.intuit.com/replies/3300505

Dynamic AdsDynamic Ads
v
Privacy Settings