How to contribute to HSA with after-tax income and regain taxes paid?

Question

The payroll department screwed up at my company and didn't withdraw the final HSA contribution from my check for the purpose of depositing it into my HSA account. Their solution: just deposit into your HSA from your checking account.
This means I will be not gaining the advantage of a withdraw of pre-tax dollars. Is there a way to reconcile this such that I can regain taxes paid after contributing to an HSA from a checking account?

Aganju · Answer

When you file your taxes, the contribution will count as a deduction, so it is effectively pre-tax (talking about federal income taxes, which is the typical understanding of 'pre-tax').
What it doesn't give you back is the payroll tax you paid on the amount - Social Security 6.2% and Medicare 1.45% - those are gone.
In other words: an HSA contribution through direct payroll deduction into your HSA bypasses federal tax, Social Security, and Medicare contributions - a contribution from you results only in no federal tax. Still, this is normally the biggest part.

How to contribute to HSA with after-tax income and regain taxes paid?

One Answer

Add your own answers!

Ask a Question