Tax season is in full swing, and your employees are looking for ways to reduce their tax liability or maximize their refund. Yet, while most people are familiar with tax-saving tactics like claiming charitable donations, mortgage interest, and childcare expenses, your employees may be missing a simple way to save an estimated 30% (depending on their tax bracket), by using a health savings account (HSA) to pay for common, everyday health needs.
If your company offers a qualifying high-deductible plan and an HSA, take time to educate employees about how this tax-advantaged account allows them to set aside pre-tax dollars to pay for eligible health-related expenses, to fund and reimburse themselves for past eligible expenses, or to save for future healthcare needs. As tax time approaches, here are three ways employees can use their HSA to reduce their tax liability and support their health.
