Brendan Willmann, CPA, EA, CFP®
Asheville: 828-348-8698
Cincinnati: 513-549-2736

How to Deduct HSA Contributions

There are two ways to make tax-deductible contributions to a health savings account:

1. Payroll Deduction

Employees who contribute to their health savings account via payroll deduction are not subject to tax on the amount deferred.  As a result, no additional deduction is taken on the tax return.  The amount of the contribution (along with any subsequent withdrawals) is still recorded on the return.

2. Direct Contributions

Contributions can be made via a deposit made directly to a health savings account.  The deadline for contributions is the tax-filing deadline, usually April 15th.  Be sure contributions made between January 1st and the tax-filing deadline are attributed to the correct tax year since either option is available!

It is important to note that contributions can be made to a health savings account via both of these options, subject to the annual maximum.   For example, if the maximum allowable contribution is $6,550  but payroll deductions only totaled $5,000, you can deposit a check for the remaining $1,550.  Be sure to deduct the additional $1,550 on your tax return via Form 8889.



The articles presented on this blog are general in nature and should not be assumed to be applicable to your situation. In addition, tax law changes daily and the articles on this blog are not updated to reflect these changes. Anyone receiving any part of the information on this blog should not rely on or act or refrain from acting on the basis of any matter or information contained in this blog without seeking appropriate tax, legal or other professional advice. The transmission and receipt of information contained on this blog does not form or constitute a client relationship. Nothing in this blog constitutes legal advice. Opinions rendered by tax professionals are not authority.  You agree to hold Brendan Willmann, EA, forever harmless from any liability for your use or failure to use the information, advice, referrals, or suggestions provided by this blog at any time. 


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