The maximum amount you can contribute to your health savings account (HSA) each year depends on multiple factors, including:
- The type of high-deductible health plan (HDHP) coverage you have
- Your age
- The date you became an eligible individual
- The date you stopped being an eligible individual
Go to this section in Credit Karma Tax: Health Savings Account (HSA)
For 2018, you can contribute to $3,450 for self-only HDHP coverage, and a maximum of $6,900 for family HDHP coverage. If you’re an eligible individual who is 55 or older by the end of the tax year, you may contribute an additional $1000.
You may want to consider reviewing the HSA section even if you don’t recall making any contributions to your HSA during the tax year. Your employer might have contributed to an HSA directly from your W-2 (box 12, code W). Additionally, if you withdrew money from the HSA account or if you’ve received a Form 1099-SA, you should complete the HSA distributions section in Credit Karma Tax.
Go to this section in Credit Karma Tax: HSA Distributions
What qualified medical expenses can I use for HSA?
You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA.
Go to this section in Credit Karma Tax: Form 1099-SA
Generally, qualified medical expenses are payments for goods or services that would meet the same eligibility as the medical and dental expenses deduction. Common examples of expenses include prescribed medication, dental treatment, and hospital fees. You may also include the qualified medical expenses that you paid for other individuals, including:
- Your spouse
- A qualifying dependent that you’ve claimed on your tax return
In most cases, insurance premiums aren’t considered a qualified medical expense unless they’re for:
- Long-term care insurance,
- Health care continuation coverage (such as COBRA),
- Health coverage while receiving unemployment benefits, or
- Medicare and other health coverage if you’re age 65 or older.
Note: Premiums paid from the tax-free distributions in your HSA can’t be used to claim the tax credit for health coverage.
What happens if I have excess HSA contributions?
Excess contributions made to your HSA above the IRS limits ($3,450 for self-only or $6,900 for family coverage with a catch-up contribution allowance of $1000 for those eligible individuals age 55 or older) aren’t tax deductible. Enter your HSA information into the Health Savings Account (HSA) section, and we’ll determine if any of your HSA contributions are taxable based on the information you provide.