Five Great Tax Tips For 2017
B Y Rebecca The Finance Writer
Fathiyyah "Tia" Doster
Fathiyyah "Tia" Doster
CREATE A PLAN
For family coverage the limits are an annual deductible of not less than $2,600 and require that out-of-pocket expenses not exceed $13,100. Out-of-pocket expenses must be for qualifying medical costs and do not include what you pay for medical insurance premiums
One of the benefits of funding a HSA is that you can make a contribution before the 2016 tax return due date (without extension) and lower the amount of income you will pay tax on for 2016 by the amount of your contribution. The contribution limits are as high as $4,350 for individuals and $7,750 for families. A significant benefit is that since this is money you will use at some point in the future, as long as the funds are spent on medical expenses, those costs can be paid from the HSA and never be subject to income tax. Any growth from the performance of the underlying investment for the HSA, any interest or dividends earned, grow tax deferred and are disbursed tax free if used for medical expenses.