04/09/2026
I just had a client share they had to pay $1,100 to the tax man!
Not ideal. While he didn’t get a refund, he also didn’t give the government an interest free loan through that tax refund.
I told him he can still reduce his tax load before April 15.
If he invests the maximum amount into an HSA, he can potentially end up getting a $61 refund.
Here’s the math…
2025 HSA contribution limit (individual): $4,300
Assume:
• Federal tax bracket: 22%
• Connecticut state tax: ~5%
Total tax savings:
$4,300 × 27% ≈ $1,161 in tax savings
Meaning:
That $1,100 tax bill could effectively be offset by simply redirecting money into a tax-advantaged account.
And if they’re in a higher tax bracket? Even more savings.
And here’s the best part…
That money isn’t “gone” — it’s:
• Tax-deductible going in
• Tax-free growing
• Tax-free coming out (if used for medical expenses)
Triple tax advantage. Hard to beat.
The real takeaway:
It’s not just about what you owe… it’s about what you do next.
Smart planning > reacting at tax time.
I am not a tax professional and this is not tax advice.
I am a registered investment counselor who can work with you to make sure your investments are reaching your financial goals.
