8. How do the HSA tax savings work?

An HSA makes it easy to save on your taxes: At the end of each year, you will be sent a statement showing the amount you contributed to your HSA that year. You can deduct this amount provided it is less than or equal to the maximum allowable contribution.

Much like an IRA, HSA deductions are "above-the-line" and thus can be taken even if you do not itemize.

If you are self-employed, in addition to deducting your HSA contributions, you may be able to deduct 100% of your health insurance premiums, provided that:

• You are not eligible to participate in a subsidized health plan offered by an employer or your spouse's employer.
• The deduction does NOT exceed the amount of net income from your business.

7. How do I use the funds in my HSA? | 9. How can I get an HSA? >

More HSA information:

1. What is an HSA?
2. Why should I get an HSA?
3. What are qualified medical expenses?
4. What insurance plans are HSA-eligible?
5. How much can I contribute to my HSA?
6. Is my money safe?
7. How do I use the funds in my HSA?
8. How do the tax savings work?
9. How can I get an HSA?