The ColoHealth Health & Wealth Newsletter
April 2024
Vol. 14, Issue 6

Smart Last-Minute Tax Moves for Colorado Residents

Yes, we all hate filing taxes. And none of us like paying them very much, either!

But we all like saving money. Especially if we can do it at the expense of the IRS! 

So let’s get right to these actionable tax tips!

1.) Make Your Last-Minute HSA Contributions

Most health share plans are not HSA-compatible. But if you are a member of HSA SECURE, and you meet certain other requirements, you ARE eligible to make pre-tax contributions to a health savings account.

And you should! HSAs are an incredibly powerful personal finance tool. So If you have HSA SECURE, max your HSA contribution! You have until April 15th to make your contributions for tax year 2023.

Specifically, can contribute up to $3,850 for self-only plans, and up to $7,750 for family coverage. Those over 55 can contribute an additional $1,000 in “catch-up contributions.” 

Remember, HSAs offer triple tax advantages: 

• Contributions are tax-deductible. 
• The account grows tax-deferred, as long as the money stays in your HSA.
• Withdrawals for qualified medical expenses are tax-exempt.

2.) Become HSA-Eligible (Sign Up For “HSA MEC”) 

If you don’t have HSA SECURE, but you’re interested in contributing an HSA for 2024 and beyond, we now have an efficient, affordable way to do just that!  

It’s called HSA MEC, and it’s a way to become eligible to contribute to HSAs even if you have a health sharing plan and you’re not currently covered by an HDHP.   

It won’t provide an immediate tax benefit on April 15th. But you’ll be much better off come next April, when tax time comes around again. 

Contact your Personal Benefits Manager today to learn more or sign up on our HSA MEC page. 

 3.) File, Even If You Don’t Have To File. 

File a Colorado state income tax return, that is. Even if you don’t think you have any income tax liability in Colorado.

Why? Because this year, Colorado is refunding $800 to every single filer, and $1,600 to every married couple filing a joint return. It’s called the TABOR Refund, and you can get the full amount even if you had little or no tax liability in Colorado for 2023. 

4.) Top Off Last Year’s IRA and/or Roth IRA

Contributing to an IRA may lower your taxable income, depending on your income. But you can still make a non-deductible IRA contribution, regardless of how much money you make.

And Roth IRAs offer tax-free growth. 

Make sure you take full advantage of these tremendous tools, and contribute everything you are allowed!

Keep in mind you have the rest of this year to contribute the max amount to your IRA accounts. But remember: You only have until April 15 to max out your contributions for tax year 2023. There are no extensions for this deadline. 

5.) Claim All Your Deductions

If you have unreimbursed medical expenses that are more than 7.5% of your Adjusted Gross Income, it may make sense to claim the excess as itemized deductions.

This can include a wide range of expenses, from doctor visits to medical devices.

However, depending on your situation, you could be better off not trying to claim them as itemized deductions, and instead just take the standard deduction.

So it’s a good idea to calculate your taxes both ways, and then file the return that makes the most sense for you. 

6.)  Plan for Next Year

Looking ahead, you might be wondering how you can save even more money on your taxes next year.

One idea is to take that TABOR refund you’ll be getting back this year, and put it directly into your HSA account.

It’s also a great time to reconnect with your Personal Benefits Manager to see if there are any changes you can make to your current plan.

Your PBM can look to see how much money you could save by switching health plans, see if you qualify for a special enrollment period, compare health sharing plans, or help you switch to an HSA-eligible plan for maximum tax savings and long-term retirement security! 

A Friendly Reminder

Disclaimer: I am not a tax professional, and so I can’t give individualized tax advice. This newsletter is for general informational purposes only. 

For personalized advice that considers your unique situation, please consult with a professional tax advisor.

However, I hope you found some of these tips helpful as you make the best health choices for you and your family.

Here’s to making smart moves, not just at tax time, but all year round!

To Your Health and Wealth,

Wiley P. Long III
President- ColoHealth

The ColoHealth Health & Wealth Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.

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