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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

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