What’s the best tax deduction or tax break? That’s a question I hear all the time and I often point people to their healthcare and HSA tax deductions for the biggest benefit. While many people believe health expenses are the biggest deductions they can claim, thinking about your HSA account as a large tax deduction and even a potential retirement account can maximize your tax savings.

With HSA tax deductions, health savings accounts can be used for more than just healthcare

Megan Gorman, a senior contributor at Forbes and the founder of Chequers Financial Management, joins me on this episode of the Taxgirl podcast. We discuss why you should be using the maximum tax deductions on your healthcare savings account.

Listen to Kelly and Megan talk about HSA tax deductions:

• The main healthcare tax breaks
• What is an HSA?
• Flex spending accounts
• Archer Medical Savings Accounts
• How you can use an HSA for retirement
• Who an HSA works for best
• Using an insurance broker to find the best HSA for you
• 2021 HSA tax deduction maximums -- Individual vs. family amounts
• Where to get an HSA
• The difference between tax dependents and healthcare dependents
• Utilizing an HSA as a healthcare dependent
• Can you take money out of an HSA?
• HSA penalties
• States where HSA tax deductions aren’t as useful

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Links mentioned:

Kelly’s Website – Taxgirl

Megan Gorman - Website

Megan Gorman - Email