As the cost of healthcare continues to rise, many people are looking for ways to cut back on their expenses. One way to do this is by using medical savings accounts (MSAs). What are medical savings accounts, and how can they help you save on your healthcare costs? In this article, we will explain everything you need to know about MSA deductibles, including the breakdown for 2018.
How do Medical Savings Accounts work?
Medical Savings Accounts (MSAs) are a way for people to save for medical expenses. With an MSA, you can contribute money each paycheck and use the money to pay for qualifying medical expenses without having to pay taxes on the contributions. The account will then accumulate interest, which you can use to cover future expenses.
In order to qualify for an MSA, you must have an annual income below $50,000 if you are single or $60,000 if you are married filing jointly. You also must be covered by a high-deductible health plan or have access to a healthcare savings account through your employer.
The best part about MSAs is that the contribution limit is currently $3,500 per year for individuals and $6,750 per year for couples filing jointly. This means that you can put away a significant amount of money each year to use for qualifying medical expenses.
If you are interested in opening an MSA, be sure to speak with your financial advisor about what kind of account would work best for your needs.
What are the benefits of having a Medical Savings Account?
Medical Savings Accounts (MSAs) are great tools for people who want to save money on their healthcare costs. Here are five reasons why you should consider opening an MSA:
1. You can use your MSA to cover deductible and out-of-pocket expenses associated with major medical procedures, such as surgery and childbirth.
2. You can use your MSA to cover co-pays and other health care expenses not covered by your insurance plan.
3. Your MSA can help you save on prescription drugs and other medical supplies.
4. You can use your MSA to cover emergency expenses, such as car repairs or unexpected medical bills.
5. You can accumulate growth on your MSA tax free, so it becomes a valuable savings tool for future healthcare costs.
How much can you deduct from your taxes for medical expenses?
Medical expenses can be deductible from your taxes, so it’s important to know how much you can deduct. Here’s a breakdown of the maximum amount you can deduct for 2017:
Medical Expenses Deductible Amounts
The IRS allows you to deduct up to $6,350 for medical expenses in 2017. This includes both out-of-pocket expenses and premiums paid for medical coverage. If you are covered by an employer-sponsored health insurance plan, your employer may also be able to contribute toward your deductible.
If you are self-employed or do not have health insurance, the amount you can deduct is reduced. The IRS allows you to deduct only 50% of your medical expenses, or $3,750 in 2017.
Conclusion
Thank you for reading this article on the medical savings account deductible breakdown. In it, we will discuss the types of medical expenses that are eligible for a medical savings account deduction and which are not. We will also provide an example of how to calculate the medical expense amount that is eligible for a deduction using our sample tax return. Finally, we will provide some tips on what expenses you might want to consider when filing your taxes so that you can maximize your deductions.