Tax reduction ideas for 2013

You should consider maxing out your Health Savings Account (“HSA”) for 2013. You have until April 15th to make a contribution for 2013. Let’s say you participated in a high-deductible health plan in 2013 and you have an HSA. In addition, your employer’s deposit. contributions (if any) plus your payroll deduction contributions (if any) in 2013 were less than the maximum allowable. You can make a contribution to your HSA and designate it as a contribution for 2013. Keep these rules in mind..

·         For 2013, the maximum contribution is $3,250 for an individual and $6,450 for families. There is an additional catch-up contribution of $1,000 if you are 55 or older. (These limits are for a full year of eligibility in a high-deductible plan in 2013, and must be prorated for a partial year of eligibility.)

·         You must designate your contribution for 2013. Without a specific designation, the trustee will probably treat it as a contribution for 2014.

·         Your contribution generates an above-the-line deduction on your 2013 federal and CT tax returns. This means you receive the deduction even if you are not itemizing deductions.

What if you have already filed your 2013 tax return?  It might be worth your while to make a contribution and then amend your federal and CT returns. 

Leonard Carusi