Tax25 How does my enrollment date in my health insurance affect he amount of my HSA deduction?
The starting and ending date of your Qualifying High Deductible Health Plan controls the calculation of the HSA deduction because the deduction is pro-rated depending on the number of full months enrolled in the qualifying insurance plan. For example, if you enroll in a HSA-qualified health insurance plan on February 10 and terminate the coverage on July 20, the health insurer would report to the IRS that you were eligible for 4 months of HSA deductions (March through June). Your tax deduction allowed is then calculated as 4/12 of the maximum annual deduction.
