Do I have to deduct my contributions on my tax return the same year they're made?
No. You're not required to deduct contributions in the year that your contributions are made. This means that contributions you make during a low-income year could be used to reduce your taxable income in a future year when you fall under a higher
tax bracket.
For example, a student who works part-time can contribute $1,000 to their FHSA but wait until they have a well-paid job after they graduate before applying the corresponding deduction. You could then get a more advantageous tax savings.