HSA Tax Deduction
Did you know you don't have to be an employee to contribute to a Health Savings Account (HSA)? In 2018, self-employed individuals can contribute up to $3,450 ($6,900 if family) to their HSA, all of which could be tax-deductible on their Form 1040. To be eligible for the HSA deduction you must be covered by a high deductible health plan (HDHP) and not be covered under any non HDHP plan, you cannot be claimed as a dependent on someone else's return and you cannot be enrolled in Medicare. To take advantage of the HSA deduction you need to complete Form 8889 and then deduct qualifying amounts on Form 1040.