How Do I Figure My Limitation for Form 8853- Archer MSA Deduction?

If you're claiming an Archer Medical Savings Account (MSA) deduction, you must first calculate your annual deduction limitation. This limitation determines the maximum amount you can deduct on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.

The IRS provides a worksheet in the Form 8853 instructions to help you calculate this amount based on your High Deductible Health Plan (HDHP) coverage and eligibility during each month of the tax year.

Determine Your Monthly Limitation Amount

Review each month of the year separately.

Enter $0 for any month if either of the following applies:

• You were enrolled in Medicare during that month.
• You were not an eligible individual on the first day of that month.

For all other months, calculate your limitation based on the type of HDHP coverage you had on the first day of the month.

Self-Only Coverage

If you had self-only HDHP coverage, enter 65% of your plan's annual deductible for that month.

For the 2026 tax year, the annual deductible must be:

• At least $1,700
• No more than $8,500

Family Coverage

If you had family HDHP coverage, enter 75% of your plan's annual deductible for that month.

For the 2026 tax year, the annual deductible must be:

• At least $3,400
• No more than $17,000

Calculate Your Annual Limitation

After completing all 12 months:

1. Add the monthly amounts together.
2. Divide the total by 12.

The result is your Archer MSA deduction limitation. Enter this amount in the appropriate section of Form 8853.

Tip: If your eligibility and HDHP coverage remained the same for the entire year, you can calculate January's amount and use that figure as your limitation for the year.

What If I Had More Than One HDHP?

If you or your spouse had more than one HDHP on the first day of a month:

• If any plan provided family coverage, use the family coverage rules for that month.
• If both spouses had family coverage under separate HDHPs, both spouses are treated as having family coverage using the plan with the lowest annual deductible.

What If I Am Married Filing Separately?

If you:

• Had family HDHP coverage, and
• File a Married Filing Separately return,

enter 37.5% of the annual deductible for each eligible month.

You and your spouse may agree to divide the 75% limitation differently. If you do, make sure your spouse reports the remaining share using the same allocation.

How to Enter Form 8853 in the Program

To complete Form 8853 in the program:

1. Go to Federal
2. Select Deductions
3. Choose Adjustments to Income
4. Select MA MSAs, Archer MSAs and Long-Term Care Insurance Contracts

After entering your information and limitation amount, the program will complete Form 8853 for you.