Wisconsin DOR Publishes Fact Sheet on Individual Income Taxation for Health Savings Accounts

The Wisconsin Department of Revenue Feb. 4 published a 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 plans. The federal provisions relating to HSAs generally apply for 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allowed when computing state income tax amounts; 3) the state penalty imposed for excess contributions that aren’t withdrawn, and distributions not ...