Using HSA To Reduce Insurance Premiums

Are Health Insurance Premiums Tax Deductible Or Not

Health is always our wealth. When our health gets compromised, we may find it difficult to meet the medical expenses. In order to help people with such expenses, HSA or Health Savings Accounts are introduced. These accounts have helped millions of Americans who do not have group insurance health coverage. Those who are qualified for the same get the change to deduct all the contributions that they have incurred and they could even utilize the same without getting tax imposed on it.

If you wish to enjoy the services of an HSA account, it is essential to buy a new high deductible health insurance plan. When we think about health insurance plan, the major question that is often asked is that ‘Are health insurance premiums tax deductible?’ You can get more information about the same ahead.

Let us check the major steps that you need to follow for using HSA to deduct insurance premiums.

Instructions

• You can meet a broker or even an agent. Try to open a Health Savings Account with them. Along with the application that you send, you will have to give or pay a minimum of one month’s premium. Along with the same, you need to buy a high deductible health insurance policy. This is something that is essential for all HSA.
• You need to plan your investment and for the same, you could select a portfolio. You can try your best to make the maximum contribution that would be acceptable for your HSA account. A majority of HSA holders would try to make their investments in mutual funds or similar other investment plans.
• You will have to provide the total contribution made for HSA on 25^th line of 2009 1040. It will be possible to reduce your premiums only from the entire investment in HSA and not simply for the single premiums that are paid from your end. You should also ensure that AGI is deducted by the contribution. You can check all the program entries to ensure the same.

      Insurance Premiums Tax Deductible Or Not

• Provide the insurance premium amount on the 29^th line of 1040. The insurance premiums will have to be paid directly to the provider of your insurance. To do this, you will be allowed to deduct an amount from HSA, but this will have to be deducted separately.

All these will be allowed only if you qualify for medical expenses. Now you know the answer to the question, “Are health insurance premiums tax deductible?” Plan well and invest in the insurance policy that is best suited for you.