How to include HSA contribution in ACA Marketplace application?

[pirsquared]

I plan to choose an HSA-eligible plan for 2024. I know that I can include planned IRA contributions on the application under "expenses," which lowers my income and increases my subsidy. However, I heard that there is not an option on the drop-down menu for HSA contributions. is this correct? Is the HSA PTC only realized when reconciling after the end of the year at tax time?

 

[SevenUp]

There is no "HSA PTC" as such. There is the HSA deduction you can take on Schedule 1 (similar to a tIRA deduction) and there is Form 8962 that reconciles any APTC against your actual income for the year.

One would hope the only thing that matters for the application is a good estimate of your bottom line MAGI for Affordable Care Act purposes. If so, then adjusting whatever you can adjust to arrive at the desired bottom line should be fine.

 

[pirsquared]

There is no "HSA PTC" as such. There is the HSA deduction you can take on Schedule 1 (similar to a tIRA deduction) and there is Form 8962 that reconciles any APTC against your actual income for the year.

One would hope the only thing that matters for the application is a good estimate of your bottom line MAGI for Affordable Care Act purposes. If so, then adjusting whatever you can adjust to arrive at the desired bottom line should be fine.

Right, by "HSA PTC," I meant the amount of increased PTC gained on Form 8962 due to the HSA deduction on Schedule 1 It's just that there is a spot on the Marketplace application to include IRA expenses and not HSA expenses. I just wanted to know if I was missing something there.

 

[PaunchyPirate]

Right, by "HSA PTC," I meant the amount of increased PTC gained on Form 8962 due to the HSA deduction on Schedule 1 It's just that there is a spot on the Marketplace application to include IRA expenses and not HSA expenses. I just wanted to know if I was missing something there.

I would juggle those application numbers enough so that you arrive at the estimated MAGI that you want to report to the exchange. It’s the bottom line number that gets reconciled at tax time.

I assume this is the federal exchange. It obviously has changed since I used it a few years ago. Back then, we just entered a single estimated income number. I’ve been on Pennsylvania’s own exchange for a couple years (soon to be 3) and we still only have to enter one number on the application. Actually, I don’t even have to enter anything if I want to leave it the same as the previous year. It automatically carries over. I do grant the exchange access to my tax returns, so I assume they will prompt me at some point if my estimates don’t match reality at some point.

 

[pirsquared]

I would juggle those application numbers enough so that you arrive at the estimated MAGI that you want to report to the exchange. It’s the bottom line number that gets reconciled at tax time.

I assume this is the federal exchange. It obviously has changed since I used it a few years ago. Back then, we just entered a single estimated income number. I’ve been on Pennsylvania’s own exchange for a couple years (soon to be 3) and we still only have to enter one number on the application. Actually, I don’t even have to enter anything if I want to leave it the same as the previous year. It automatically carries over. I do grant the exchange access to my tax returns, so I assume they will prompt me at some point if my estimates don’t match reality at some point.

This is the federal exchange and they ask for details and categories for all income. I also grant the exchange access to my tax returns and I try to be as accurate as possible with my estimates.

Thanks!