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Want to pay less in taxes?

The IRS is upping the contributions you can make to your HSA in 2024.

GREENSBORO, N.C. — How would you like to pay less in taxes?

Yes and yes! So, what's the catch?

Really, it's all good news, especially if you have the option of contributing to an HSA, a health spending account, at work.

The IRS is upping the amount of money you can put into your health savings account. This year, in 2023, a family can contribute $7,750 and an individual can contribute $3,850.

In 2024, those numbers jump to $8,300 per family and $4,150 for an individual. If you're over 55 years old, you can contribute an extra thousand dollars.

The best part, it's tax-free.

“People need to realize they're not going to pay any taxes on that money going or coming. They need to remember, they're not going to pay federal tax on it, none that is withheld and they're not going to pay Social Security Medicare tax on it either,” said Kevin Robinson of Robinson Tax & Accounting Services.

So, you make the money and you put it into the HSA but you don't pay taxes on the income. When you take the money out to use it for a qualified medical expense, you don't pay taxes on the money. That's a win!

Here's something else. When you contribute money to your HSA, it brings down your Adjusted Gross Income on your tax return. That means you're taxed at a lower rate.

“It brings down their wages in Box 1 (on a W2) that's a good selling point too, immediate tax relief. People need to take advantage of it,” said Robinson.

How much could you save in taxes? USA Today had an example:

If a 55-year-old couple had a household income of $100,000 and a 22% tax rate, but they contributed a maximum of $10,300 dollars, they would save at least $2,200 in taxes.


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