You must be covered under a high deductible health plan (HDHP) in order to establish and take a deduction for contributions to a health savings account (HSA).
Per IRS Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans, page 3:
High deductible health plan (HDHP). An HDHP has:
An HDHP may provide preventive care benefits withouta deductible or with a deductible less than the minimumannual deductible. Preventive care includes, but isn’t limited to, the following:
For more information on screening services, see Notice 2004-23, 2004-15 I.R.B. 725 available at IRS.gov/irb/2004-15_IRB#NOT-2004-23..
The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2019.
|Self-Only Coverage||Family Coverage|
|Minimum annual deductible||$1,350||$2,700|
|Maximum annual deductible and other out-of-pocket expenses*||$6,750||$13,500|
* This limit doesn’t apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies.
Self-only HDHP coverage is HDHP coverage for only an eligible individual. Family HDHP coverage is HDHP coverage for an eligible individual and at least one other individual (whether or not that individual is an eligible individual).
To enter your HSA contribution and/or distribution information into the TaxAct® program:
Note. If you select No Coverage Under an HDHP in 2019 on the screen titled Health Savings Accounts - Type of Coverage, the HSA deduction will not carry to Line 12of IRS Schedule 1 (Form 1040).