Save on Taxes and Healthcare Costs with a Health Savings Account

Eligible taxpayers with high-deductible health plans who do not have other health insurance coverage or are not enrolled in Medicare may be able to claim a deduction for contributions made to a Health Savings Account (HSA).

Distributions from a Health Savings Account (HSA) may be tax-free if used to pay for qualified medical expenses, including:

• Deductibles and co-payments

• Over-the-counter drugs

• Long-term care insurance premiums

• Health insurance premiums

• Medical expenses incurred during a period of unemployment

• It is important to carefully track and document HSA distributions to ensure that they are being used for qualified expenses in order to take advantage of the tax-free treatment.

An HSA offers triple tax benefits:

• Contributions to an HSA are tax-deductible

• Earnings on the account grow tax-free

• Withdrawals for qualified medical expenses are also tax-free

An HSA is portable and can be used in future years, even if you change jobs or move. However, it is important to note that some deductions may be lost if you are subject to the alternative minimum tax (AMT) and different strategies may need to be considered to minimize your tax liability for the current year and in the future.

It is important to consider state income tax rules in your tax planning, as they may differ from federal tax rules.

Use Vegas Tax Solution to confidently file your own taxes by answering simple questions and receiving guidance through the process. With our help and Vega Solution, you can maximize your potential refund, guaranteed.