What Is an HSA?
A Health Savings Account (HSA) is a tax-advantaged account that lets you save money for medical expenses. Contributions to your HSA are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. It's a triple tax benefit.
Contribution Limits
For the 2025 tax year, the contribution limits are:
| Coverage Type | Under 55 | 55 or Older (Catch-Up) |
|---|---|---|
| Individual (self-only) | $4,300 | $5,300 |
| Family | $8,550 | $9,550 |
The catch-up contribution for those 55 and older is an additional $1,000.
HDHP Requirement
You can only contribute to an HSA if you are enrolled in a High Deductible Health Plan (HDHP). For 2025, an HDHP must have:
- **Minimum deductible:** $1,650 (individual) or $3,300 (family)
- **Maximum out-of-pocket:** $8,300 (individual) or $16,600 (family)
If you're not sure whether your plan qualifies, check with your employer or insurance provider.
Above-the-Line Deduction
Like the student loan interest deduction, HSA contributions are an above-the-line deduction. This means you get the tax benefit whether you itemize or take the standard deduction. It directly reduces your AGI, which can also help you qualify for other deductions and credits.
Employer vs. Personal Contributions
- **Employer contributions** (including payroll deductions) are reported on your W-2 in Box 12 with code W. These are already excluded from your taxable wages, so you don't deduct them again.
- **Personal contributions** made directly to your HSA (outside of payroll) are what you'll deduct on your return.
How to Enter in FileJoy
- Click **Deductions & Credits** in the left sidebar
- Select **HSA contributions**
- Enter your **total contributions** for the year
- Subtract any **employer contributions** shown on your W-2 (Box 12, code W)
- FileJoy calculates your deductible amount and checks that you're within the limits
If you over-contributed, FileJoy will flag it and help you understand your options (like withdrawing the excess before the filing deadline).
Tips
- You have until the **tax filing deadline** (usually April 15) to make HSA contributions for the prior year
- HSA funds roll over year to year—there's no "use it or lose it" rule
- After age 65, you can withdraw HSA funds for any purpose without penalty (though non-medical withdrawals are taxed as income)
- Keep receipts for all medical expenses paid with HSA funds
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