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FAQs >Health Savings Accounts >How do the tax savings work?
  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.
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