If you're claiming an HSA deduction on Form 8889, the IRS limits how much you can deduct based on your Health Savings Account (HSA) eligibility during the year. Your deduction may also be reduced for any month you were enrolled in Medicare because Medicare coverage generally makes you ineligible to contribute to an HSA.
Understanding your limitation is important because it determines the maximum HSA contribution you can deduct on your tax return.
What Are the HSA Contribution Limits for 2026?
For tax year 2026:
- Self-only HDHP coverage: $4,400
- Family HDHP coverage: $8,750
- Age 55 or older: You may contribute an additional $1,000 catch-up amount.
That means the maximum contribution limits are:
- Self-only coverage, age 55 or older: $5,400
- Family coverage, age 55 or older: $9,750
Our software automatically calculates your limitation if:
- You had self-only HSA coverage, or
- You had family coverage and neither you nor your spouse maintained separate HSAs.
If you had family coverage and both spouses had separate HSAs, you'll need to calculate your limitation manually before entering it into the return.
How Is My Limitation Determined?
Your limitation is based on your HSA eligibility for each month of the tax year.
To calculate it, review each month and determine whether you were an eligible individual. Factors that can affect eligibility include:
- The type of high-deductible health plan (HDHP) coverage you had
- Whether you were enrolled in Medicare
- Whether you and your spouse both had HSAs
- Special IRS rules and exceptions that apply to certain situations
The IRS provides a worksheet to help calculate your limitation amount in the Instructions for Form 8889.
Before completing the worksheet, read the instructions for Line 3 in the Form 8889 instructions. These instructions explain special rules and exceptions that may change how the worksheet is completed.
Where Can I Find the Worksheet?
The limitation worksheet is included in the IRS Instructions for Form 8889. Complete the worksheet and keep a copy with your tax records.
After calculating your limitation, enter the amount when completing your HSA deduction information in the software.
Where Do I Enter My HSA Limitation in the Program?
To enter your HSA information:
- Select Federal
- Select Deductions
- Select Adjustments to Income
- Select Health Savings Accounts (HSAs)
Enter the limitation amount you calculated using the IRS worksheet.