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HSA contribution for married filing separately

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  • HSA contribution for married filing separately

    Hi,

    Background: I am a PGY2 resident married to an Engineer. I have about $200K in student loans and my husband has none. We have been filing taxes together since we married 3 years ago, but my student loan payments on RePaye are $900 a month which basically means I get almost no interest reduction for being on RePaye. We have been considering filing "married filing separately" for 2017 which would allow me to enroll in Paye and have lower monthly student loan payments as I plan on pursuing PSLF.

    Question: We are both on my high deductible health insurance through my work (we have no children) and I have been contributing the maximum family contribution to my HSA ($6750). If we file married filing separately, then can I still contribute the maximum to my HSA for both of us, or do we both have to each have an HSA and each contribute $3,400 to our individual HSA accounts?

    I'm sorry if this question was asked in a previous thread. I looked around and couldn't find one, but I may have missed it so I'm sorry if there was one already.

    Any insight into this would be greatly appreciated. Thank you!

  • #2
    Hi RadRes,

    In regards to the HSA, the IRS will treat the two of you as one unit, even if you file "married filing separately."  You will make the full contribution and you will file form 8889 with your tax return.

    This should also help you lower you student loan payments since you will be fully funding the HSA contributions through your W-2 income which will be used to calculate your student loan payment as you pursue PSLF.

    You may want to look at what you are potentially giving up as well as what you could potentially gain before you choose to change filing status.  The Tax Policy Center has a calculator that will allow you to see what change will occur in taxes by switching from filing jointly to separately.  http://www.taxpolicycenter.org/interactive-tools/marriage-bonus-and-penalty-tax-calculator

    Happy Holidays,

    Scott

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    • #3
      Thank you so much! Much appreciated!

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      • #4
        Thank you so much!

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