Smart Last-Minute Tax Moves

Are you feeling overwhelmed with the pressures of tax season?

Don’t worry, there’s still time to make some smart moves that can save you money!

1.) Gather Important Tax Documents 

Make sure you have all necessary tax forms related to your HSA, and include them with your return: 

• Form 1099-SA – To report distributions from an HSA
• Form  5498-SA – To report contributions to an HSA
• Form 8889 – To report your HSA contributions and distributions
• Form W-2 (if applicable) – From your employer, which includes amounts contributed to an HSA on your behalf

2.) Make Last-Minute HSA Contributions

If you have an HSA-qualified health insurance plan but you haven’t maxed out your HSA contributions for the year, now’s the time! 

Remember, HSAs offer triple tax advantages: 

• Contributions are tax-deductible. 
• The account grows tax-deferred, as long as the money stays in your HSA.
• Withdrawals for qualified medical expenses are tax-exempt.

The contribution limit for 2024 has increased by nearly 8%. That’s great news!

But did you contribute your max amount for last year yet? If not, you have until April 15 to put in the max amount for 2023, then you’ll have the rest of this year to keep adding to the 2024 cap.

3.) Top Off Last Year’s IRA and/or Roth IRA

Contributing to an IRA may lower your taxable income for the current year (if you qualify for a deductible IRA) and Roth IRAs offer tax-free growth in future years. 

Make sure you take full advantage and contribute everything you are allowed!

Keep in mind you have the rest of this year to contribute the max amount to your IRA accounts. But you only have until April 15 to max out your contributions for 2023. 

So it’s a good idea to make sure you add all you are allowed to your accounts before the deadline.

4.) Claim All Your Deductions

If you have unreimbursed medical expenses that are more than 7.5% of your Adjusted Gross Income, you may be able to claim them as itemized deductions on Schedule A.

This can include a wide range of expenses, from doctor visits to medical devices.

But you may be better off not claiming these deductions, and taking the standard deduction instead.

It’s a good idea to work out your taxes both ways, and pick the method that’s most advantageous for you.

5.) Use Tax-Advantaged Employer Medical Reimbursement Plans

Do you have a Medical Reimbursement Arrangement (MRA), Flexible Spending Arrangement (FSA) or Health Reimbursement Arrangement through your employer? Use those for medical expenses as much as you can! 

Each of these arrangements allow you to pay for medical expenses with pre-tax dollars. This can effectively save you from 20% to 40%!

Some of them have “use-it-or-lose-it” provisions. So be sure to take advantage of them before they go away!

6.)  Plan for Next Year

Looking ahead, you might be wondering how you can save even more money on your taxes next year.

Now’s a great time to reconnect with your Personal Benefits Manager to see if there are any changes you can make to your current plan.

Your PBM can look to see how much money you could save by switching health plans, see if you qualify for a special enrollment period, compare health sharing plans, or help you switch to an HSA-eligible plan for maximum tax savings and long-term retirement security! 

A Friendly Reminder

Disclaimer: I am not a tax professional, and so I can’t give individualized tax advice. This newsletter is for general informational purposes only. 

For personalized advice that considers your unique situation, please consult with a professional tax advisor.

However, I hope you found some of these tips helpful as you make the best health choices for you and your family.

Here’s to making smart moves, not just at tax time, but all year round!

Click here to schedule an appointment, or call 800-913-0172 to get started.    

To your health and wealth,

Wiley P. Long, III
President - HSA for America

The HSA for America Maximize Your HSA Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.