Do You Add HSA Contribution into MAGI?

One common question that comes up when managing an HSA is whether you should include your HSA contributions when calculating your Modified Adjusted Gross Income (MAGI). The simple answer is no, HSA contributions are not included in your MAGI calculation.

Your MAGI is used to determine your eligibility for various tax benefits and deductions, such as the premium tax credit or the ability to contribute to a Roth IRA. Since HSA contributions are already made with pre-tax dollars, they are not counted as part of your MAGI.

When it comes to HSA contributions, they offer tax advantages both when you contribute to the account and when you use the funds for qualified medical expenses. By not including HSA contributions in your MAGI, you can fully enjoy these tax benefits without affecting your overall income calculation.

Many people wonder if HSA contributions impact their Modified Adjusted Gross Income (MAGI). The good news is that you do not include HSA contributions in your MAGI, which can be a significant relief come tax season.