An employee and spouse each has a separate individual HDHP with a $3,000 deductible for each plan. What is the maximum tax deduction if they file jointly or separately?
Answer Each can deduct $2,850 ($5,700 on a joint return) in 2007 or $2,900 ($5,800 on a joint return) in 2008, but only if they have separate individual coverage. (Updated for inflation, based on IRS Response, August 6, 2004) Question An individual is covered by a qualified HDHP with a $5,000 deductible with family coverage. The dependents under the plan are not allowable dependents for tax purposes (i.e. domestic partner’s children who are claimed on ex-spouses tax return). What is the maximum contribution for the accountholder? Answer The maximum contribution for the accountholder in this scenario is based on the family maximum. Contribution limits are determined by the plan, not the tax status of dependents. A plan is considered family coverage if at least one eligible individual and another individual are covered by the plan.
Related Questions
- An employee and spouse each has a separate individual HDHP with a $3,000 deductible for each plan. What is the maximum tax deduction if they file jointly or separately?
- Can an individual who is not covered by a high-deductible health plan HDHP for the whole year contribute the maximum annual limit established by the IRS?
- Can an individual who is not covered by a high deductible health plan HDHP for the whole year contribute the maximum annual limit established by the IRS?
