Health Savings Account (HSA) Contributions
If you participate in a high deductible health plan (HDHP), a Health Savings Account (HSA) can be set up by you or your employer to pay for qualified medical expenses.
A Health Savings Account is different than a Flexible Spending Account. Many people have a Flexible Spending Account where they withhold part of their salary for medical expenses and receive reimbursements when they submit their medical expense receipts to their employer.
If your HSA contributions are made through your employer, your W-2 wages will have already been reduced by the amount both you and your employer contributed to the HSA. The amount of the HSA contributions reported on your W-2 are tax-free contributions. So for an employer-based HSA, you won't have a deduction for the HSA contributions on your tax return (since it was already contributed tax-free), but you still need to report your HSA information on your tax return.
If you made HSA contributions outside of payroll deduction through your employer, you may receive a deduction for these contributions on your tax return. Be sure to enter these contributions on the Health Savings Account Information page.
A Health Savings Account is different than a Flexible Spending Account. Many people have a Flexible Spending Account where they withhold part of their salary for medical expenses and receive reimbursements when they submit their medical expense receipts to their employer.
If your HSA contributions are made through your employer, your W-2 wages will have already been reduced by the amount both you and your employer contributed to the HSA. The amount of the HSA contributions reported on your W-2 are tax-free contributions. So for an employer-based HSA, you won't have a deduction for the HSA contributions on your tax return (since it was already contributed tax-free), but you still need to report your HSA information on your tax return.
If you made HSA contributions outside of payroll deduction through your employer, you may receive a deduction for these contributions on your tax return. Be sure to enter these contributions on the Health Savings Account Information page.
