Health savings account and taxes
I now elect to have an additional $350 a paycheck withheld for federal taxes because of having to pay a decent amount around tax time. If instead I put the $350 into my HSA each paycheck how would that affect having to pay taxes at tax time? Does that money I put into my HSA still count towards my income?
Terry Says
The HSA contribution is pre-tax, so it reduces your income. Just check with your employer to make sure the additional amounts are allowable under the contribution limits.