At tax time


tax form

Contributions to your health savings accounts are tax-deductible. Each year the bank will send you a 1099 statement for the amount deposited to your health savings account. This will be the documentation that allows you to deduct those contributions on your 1040 form. If you exceed these maximum, there are tax penalties.

Contributions to your health savings account are deductible from Gross Income. Consult with your tax advisor for greater details. (Link to 1040 form http://www.irs.gov/pub/irs-pdf/f1040.pdf?portlet=3.

Individuals

Deduct HSA contribution on line 25 of 1040 form.

Self-employed individuals

Deduct health insurance premiums on line 29.
Deduct HSA contributions on line 25 of 1040 form.

Owners of Subchapter S Corporations (>2%)

Deduct health insurance premiums on line 29.
Deduct HSA contributions on line 25 of 1040 form.

Employee of company

If your employer puts money into your HSA, you can put additional money in your HSA using payroll deduction through your company’s cafeteria plan. You do not need to report that contribution on your 1040.

If your employer does not offer payroll deduction, you can still put money into your HSA and then take a deduction on your 1040 form. Note: you can never exceed the maximum contribution limits.