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 4:
High deductible health plan (HDHP). An HDHP has:
An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual 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 2023.
|Minimum annual deductible
|Maximum annual deductible and other out-of-pocket expenses*
|* 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 in the TaxAct program, go to our Form 1099-SA - Distributions from an HSA FAQ.
Note. On the screen titled Health Savings Accounts - Type of Coverage, if No coverage under an HDHP in 2022 is selected, the HSA deduction will not carry to Line 13 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.