Wisconsin DOR Issues Updated Fact Sheet on Individual Income Tax Deduction for Health Savings Accounts

The Wisconsin Department of Revenue Jan. 4 issued an updated fact sheet on health savings accounts (HSA) for individual income tax purposes. The HSA is a special account owned by an individual and used to pay for medical expenses in conjunction with high deductible health insurance plans. The federal provisions relating to HSAs generally apply to Wisconsin for tax years 2011 and later. The publication includes information on: 1) the federal and state tax treatment of contributions to HSAs; 2) deductions allowed when computing state income tax amounts; 3) the state penalty imposed for excess contributions that aren’t withdrawn and ...