Irishgirlyc58
Thinks s/he gets paid by the post
- Joined
- Sep 26, 2020
- Messages
- 1,061
Mine increases more because it flips me into head of household instead of single.
ah yes thanks for catching this. I see there is still the $500 credit. online calculators may not be smart enough to include this.
so we have about $600 tax reduction for adding a dependent. nothing much compared to cost of insurance.
I have a question. If the over 26 child qualifies as my dependent and gets a HDHP with an HSA through ACA based on my income, is that HSA contribution tax deductible?
No. Them being a dependent disqualifies them as an eligible individual:
"To be eligible to have contributions made to your HSA, you must be covered under a high deductible health plan (HDHP) and have no other health coverage except certain disregarded coverage. If you are an eligible individual, anyone can contribute to your HSA. However, you cannot be enrolled in Medicare or be another person's dependent."
https://www.irs.gov/instructions/i8889#idm139631566675968