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Level 3
March 4, 2021
Solved

Can I choose to contribute to an HSA but not take the deduction?

  • March 4, 2021
  • 2 replies
  • 43 views

Can I make an HSA contribution up to the limit for 2020, but choose not to take the deduction? I don't want my AGI to go too low because if it drops too low I would not qualify for Affordable Care Act subsidies.

 

Similarly, can I simply choose to not take business expenses as deductions and by so doing boost my business income--and thereby keep my AGI from dropping too low and disqualifying me for Affordable Care Act subsidies?

Best answer by Critter-3

1) HSA ... the adjustment to income for an HSA contribution is optional on the tax return and not a requirement 

 

2) Sch C deductions ... by law you MUST take any and all valid business expenses on the Sch C ... that is NOT an option. 

2 replies

Critter-3
Critter-3Answer
Level 15
March 4, 2021

1) HSA ... the adjustment to income for an HSA contribution is optional on the tax return and not a requirement 

 

2) Sch C deductions ... by law you MUST take any and all valid business expenses on the Sch C ... that is NOT an option. 

TreyAuthor
Level 3
March 4, 2021

Thank you.

 

Trey