The HSA Contributions Deadline Hasn't Passed Yet, So There's Still Time to Reduce Your Tax Bill

The HSA contributions deadline for 2022 is fast approaching, but you still have time to contribute and potentially reduce your tax liability.

Health Savings Account HSA on notebook for HSA contributions deadline
(Image credit: Getty Images)

The HSA contributions deadline is April 18, but if you haven't already maxed out your 2022 contributions, you still have a little more time to do so. HSAs (Health Savings Accounts) offer a tax-efficient way to pay for medical expenses. Since employer contributions aren't included in your taxable income, earnings are tax-free, and distributions are not taxed if you use them to pay qualified medical expenses. You might also qualify for a deduction (or a larger deduction) on your tax return. 

HSA Contributions Deadline

But here's the catch — most people only have until the end of the day on April 18 to make this move. Each year, you have until the tax filing deadline to make HSA contributions for the previous calendar year. Most of the time, that deadline falls on April 15. However, this year, the federal income tax filing deadline is April 18  for most people. That is due to April 15 being on a weekend. So, while you have a little more time to take action, (and the tax deadline is later for some taxpayers impacted by storms and disasters in some states), the HSA contributions clock is still ticking.

HSA Contribution Limits 2022

  • For the 2022 tax year, you can contribute up to $3,650 to an HSA if you have self-only coverage
  • If you have family coverage, the max HSA contribution for 2022 is $7,300
  • Anyone who was age 55 or older at the end of 2022 can put in an additional $1,000 in "catch up" contributions for the year. 

However, the contribution limits can be reduced If your employer makes contributions to your HSA that are excludable from your income – including amounts contributed through a cafeteria plan. Those contributions count against your overall limit, i.e., the amount that you can contribute to your HSA is lower.

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Excess HSA Contributions

If you haven't reached your limit, think about making a quick HSA contribution today if you have some extra income available. But don't go over your HSA limit! There's a 6% penalty on excess HSA contributions. And this penalty applies to each year the excess contribution remains in your account.

What if you contribute too much to your HSA? If you accidentally put too much money in your HSA account for 2022, you can withdraw the excess amount and avoid the penalty if you do both of the following:

  • Withdraw the excess before the end of the day on Tax Day (April 18). If you request a tax filing extension, and for some people impacted by storms and disasters, this date is later. 
  • Withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your 2022 tax return.

If you don't withdraw all your excess contributions, you can apply them toward your 2023 limits. Excess contributions from previous years that are still in your HSA account can be deducted, but the deduction is limited to the lesser of (1) your maximum HSA contribution limit for the year minus any amounts actually contributed for the year, or (2) the total excess contributions in your HSA at the beginning of the year.

How Does the HSA Deduction Work?

As mentioned above, you may be able to deduct your HSA contributions for the 2022 tax year on your current federal income tax return (up to the maximum contribution limit). And it's an "above-the-line" deduction, so you don't have to itemize to claim this tax break. Instead, your contributions are reported as an adjustment to income on Line 13 of Schedule 1 (Form 1040).  You also need to submit Form 8889  with your tax return. 

So, it might be wise to put more money into your HSA before the 2022 HSA contributions deadline if you haven't already reached the limit. That's especially true if you plan to contribute to the account soon anyway. That way, you'll get that extra deduction for 2022 and save more cap space for 2023 contributions.

There are some limitations, though. For instance, you can't deduct HSA contributions made by your employer, including pre-tax funds contributed through payroll deductions. You also can't claim the deduction if someone else can claim you as a dependent on their tax return. Distributions from an IRA that are contributed to your HSA in a direct trustee-to-trustee transfer are not deductible, either. 

If you already filed your 2022 tax return, you can file an amended tax return to claim a new or increased HSA deduction if you add more to your account before the deadline. You generally have three years from the date you filed your original return or two years from the date you paid any tax due to file an amended return (go with whichever date is later). We recommend e-filing your amended return since it will be processed much faster. Once you file an amended return, you can track its status online using the IRS's "Where's My Amended Return?" tool.

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.

With contributions from