What is the tax treatment of an eligible individuals HSA contributions?
Contributions made by an eligible individual to an HSA are deductible by the eligible individual in determining adjusted gross income (i.e., “above the line”). The contributions are deductible whether or not the eligible individual itemizes deductions. However, the individual cannot also deduct the contributions as medical expense deductions under section 213.
When you make an eligible contribution to an HSA, the amount of your contribution (up to the maximum contribution limit) is deductible in computing your adjusted gross income. This means that your contributions are deductible whether or not you itemize your deductions. Any person who may be claimed as a dependent on another taxpayer’s return may not claim a deduction for a contribution to an HSA. A special rule applies to certain married couples. If either spouse has family coverage under a high-deductible health plan, both spouses will be treated as having only the family coverage (and if such spouses each have family coverage under different plans, both spouses will be treated as having the family coverage with the lowest annual deductible). The amount allowed as a deduction after application of this rule will be divided equally between the spouses unless they agree on a different division.
Contributions made by an eligible individual to an HAS are deductible by the eligible individual in determining adjusted gross income (i.e., “above-the- line”). The contributions are deductible whether or not the eligible individual itemizes deductions. However, the individual cannot also deduct the contributions as medical expense deductions under section 213.
Contributions made by you to an HSA, which do not exceed the maximum annual contribution amount, are deductible by you when determining your adjusted gross income. You are not required to itemize deductions in order to take this deduction. However, you cannot also deduct the contributions as medical expenses under section 213.
