Internal Revenue Code Section 223

223 b 2 monthly limitation.

Internal revenue code section 223. Normal taxes and surtaxes. Computation of taxable income. For more detailed codes research information including annotations and citations please visit westlaw.

Limits have been increased for 2020 as follows. Additional itemized deductions for individuals. On may 28 2019 the internal revenue service irs announced in revenue procedure 2019 25 the 2020 health savings account hsa annual contribution limit and the 2020 high deductible health plan hdhp definitional limit per internal revenue code section 223.

Internal revenue code 223. The amount allowable as a deduction under subsection a to an individual for the taxable year shall not exceed the sum of the monthly limitations for months during such taxable year that the individual is an eligible individual. 223 b 1 in general.

Internal revenue code 223. Section 223 c 2 c states that a plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for preventive care within the meaning of section 1871 of the social security act except as otherwise provided by the secretary. Internal revenue code section 223 c 2.

Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Internal revenue code irc section 223 allows individuals who are covered by a compatible health plan often referred to as a high deductible health plan hdhp to set aside funds on a tax free basis up to the contribution limit to pay for certain out of pocket medical expenses. For calendar year 2020 the annual limitation on deductions under irc section 223 b 2 a for an individual with self only coverage under a high deductible health plan is 3 550.

A deduction allowed in the case of an individual who is an eligible individual for any month during the taxable year there shall be allowed as a deduction for the taxable year an amount equal to the aggregate amount paid in cash during such taxable year by or on behalf of such individual to a health savings account of such individual.