Posts filed under the Citizens and Residents category.

Health Savings Account—Things We Should Know

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What is Health Savings Accounts (HSA)?

A health-savings account is a tax-favored account that you can contribute to before taxes. Contributions to an HAS are deductible, earnings in the health savings account are tax-exempt.  withdrawals from a health savings account are tax free as long as the money is used for qualified medical expenses.  Unlike with a flexible spending account, you do not have to spend the money by the end of the tax year.

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State Residency for state tax purpose–It is not a “to be not to be” issue.

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Why is your residency important?

Similar to the federal income tax, a state in the United States may impose personal income taxes on the state residents of world-wide income regardless of where the income is from. Nonresidents are taxed only income attributable to (“sourced to”) that state. Part-year residents are taxable on their world-wide income while a resident of the state and only on income from the state source while nonresident. States do not follow the rules of the federal income tax to determine the state residency.

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