How do the tax savings work?

HSAs make it easy to save on your taxes:

• At the end of each year, you will be sent a statement showing the amount you contributed to your HSA that year. You can deduct this amount provided it is less than or equal to the maximum allowable contribution.


• Much like an IRA, HSA deductions are "above-the-line" and thus can be taken even if you do not itemize.


• If you are self-employed, in addition to deducting your HSA contributions, you may be able to deduct 100% of your health insurance premiums, provided that:

• You are not eligible to participate in a subsidized health plan offered by an employer or your spouse's employer.


• The deduction does NOT exceed the amount of net income from your business.

Note: Check with your accountant or tax advisor for the specific federal and state tax benefits that apply to you.