All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Valued Pioneer
Posts: 4
Registered: ‎07-09-2017
Accepted Solution

HSA Deductions if not used

Hello,

 

I am unemployed in march and I have a HSA with my new Insurance that I have gotten through the ACA.

I am 54 my wife is 55 and I contributed 765 dollars ( pre tax) through my employer.

I have a new HSA account and if I understand this correctly........We as a family can contribute $6750 this year Total

So I should be able to contribute $5985 for the total of the $6750.

Also the big question is the $5985 is fully deductible even if I don't use the money.( line 25 with the form 8889) 

And that would be my adjusted gross Income?

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: HSA Deductions if not used

Hi pssev,

 

Welcome to the H&R Block community.

 

Exactly correct.  You can contribute a total of $6,750 for the year if your HSA/insurance plan is a family plan.  The contributions are deductible on the 1040 in full if you make your contributions out-of-pocket (not through work).  The money can sit in the account until you need it, but if you withdraw the funds and you use them for something other than medical expenses then the amount not used for medical expenses will be taxable.

 

Note that if you do not have a high-deductible health plan then you are not eligible to contribute to an HSA but you can still keep the funds that were already in the account when you left your employer in the HSA account and use them when you need them.  I mention this because you said you marketplace insurance.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: HSA Deductions if not used

Correction.  Assuming that you have a family plan, because your wife is age 55 or older you can actually contribute an extra $1,000 per year for a total of $7,750.

Valued Pioneer
Posts: 4
Registered: ‎07-09-2017

Re: HSA Deductions if not used

Thanks for clearing this up .

I am unemployed at the moment and didn't want to fund the HSA account if I wasn't getting a tax break for 2017. ( would be no gain)

 

I am not drawing any unemployment from the state and my health care is all out of pocket.

Can I deduct all my Insurance premiums ? ( Just the premiums are $14,400 dollars a year)  

 

 

 

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: HSA Deductions if not used

Hi pseev,

 

You're welcome.

 

Yes, you can deduct your insurance premiums as well as any premiums that you pay for your spouse and your dependents that you claim on your tax return (if you have any).  The deduction is taken on Schedule A in the medical expenses section.  The deduction is equal to your total medical expenses (insurance premiums, doctor visits, hospitals, etc.) less 10% of your adjusted gross income.  However, given your current situation I'm thinking your premiums alone will possibly be well in excess of that floor limit.

 

You can also deduct taxes you pay (state income taxes, vehicle ad-valorem taxes, and real estate taxes), mortgage insurance and interest, charitable donations, and other miscellaneous employment, education, and other expenses on Schedule A.