Health Care
Jul 22nd 2016, 5:06 pm
#46
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Health Care
The greatest amount that is tax-deductible and can go into an HSA.
For example in one year, if you put $5,950 into your HSA, and your employer puts in $800, then you have two doctor's visits costing $250 each, tests costing $400, and drugs costing $100, and pay all of those from your HSA, at the year end you will have $5,750 in your HSA, and you deduct $5,950 from your taxes. The $800 direct contribution from your employer is included in the $6,750 cap, and isn't taxable.
For example in one year, if you put $5,950 into your HSA, and your employer puts in $800, then you have two doctor's visits costing $250 each, tests costing $400, and drugs costing $100, and pay all of those from your HSA, at the year end you will have $5,750 in your HSA, and you deduct $5,950 from your taxes. The $800 direct contribution from your employer is included in the $6,750 cap, and isn't taxable.
Last edited by Pulaski; Jul 22nd 2016 at 5:13 pm.
Jul 22nd 2016, 8:10 pm
#47
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Health Care
The greatest amount that is tax-deductible and can go into an HSA.
For example in one year, if you put $5,950 into your HSA, and your employer puts in $800, then you have two doctor's visits costing $250 each, tests costing $400, and drugs costing $100, and pay all of those from your HSA, at the year end you will have $5,750 in your HSA, and you deduct $5,950 from your taxes. The $800 direct contribution from your employer is included in the $6,750 cap, and isn't taxable.
For example in one year, if you put $5,950 into your HSA, and your employer puts in $800, then you have two doctor's visits costing $250 each, tests costing $400, and drugs costing $100, and pay all of those from your HSA, at the year end you will have $5,750 in your HSA, and you deduct $5,950 from your taxes. The $800 direct contribution from your employer is included in the $6,750 cap, and isn't taxable.
Jul 22nd 2016, 8:27 pm
#48
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Jul 22nd 2016, 8:57 pm
#49
Forum Regular
Joined: Jul 2014
Location: Northern Atlanta area, GA
Posts: 243
Re: Health Care
Jul 22nd 2016, 9:01 pm
#50
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Health Care
That is not quite correct. In certain states (California, Alabama and New Jersey), HSA contributions made by employers, and HSA earnings (i.e. from interest or investments within the HSA) are taxable at the state level. In New Hampshire and Tennessee, HSA earnings (but not contributions) are taxable.
Sorry, yeah, I used the American abbreviated phrasing of "deducting it from your taxes", meaning it can be deducted from your gross income to reach your net, taxable income.
Last edited by Pulaski; Jul 22nd 2016 at 9:06 pm.
Jul 22nd 2016, 9:45 pm
#51
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Re: Health Care
That is not quite correct. In certain states (California, Alabama and New Jersey), HSA contributions made by employers, and HSA earnings (i.e. from interest or investments within the HSA) are taxable at the state level. In New Hampshire and Tennessee, HSA earnings (but not contributions) are taxable.
