If you’re self-employed, contributing to a health savings account is a tax-reduction strategy that can help to reduce your taxes. A health savings account can be used to pay or reimburse certain medical expenses.
Here are several benefits from having a health savings account:
1. You can claim a tax deduction for annual contributions that you make to your HSA even if you do not itemize your deductions on Form 1040.
2. The contributions remain in your account until you use them.
3. The interest or other earnings on the assets in the account are tax free.
4. Distributions may be tax free if you pay qualified medical expenses.
5. An HSA is “portable.” That means that the account stays with you even if you become an employee or else leave the workforce.
To be an eligible individual and qualify for a health savings account, you must meet the following requirements:
1. You must be covered under a high deductible health plan.
2. You are not enrolled in Medicare.
3. You cannot be claimed as a dependent on someone else’s tax return.
For more information, please call our office today.
If you have questions about starting, growing, protecting, reducing business taxes, or selling your small business, please contact us. As a CPA, Certified Business Advisor, Small Business Consultant, and Advanced Certified QuickBooks ProAdvisor, we specialize in working with small business owners just like you and provide tax, accounting, financial analysis, management, business planning, and small business advisory services. We can advise you on how to start, manage, grow, and terminate a small business. For more information, call (727) 391-7373 or else visit us on the web at http://www.LindaStortzCPA.com.