HSA Contribution for a earning child

Forum|Forum|6 years ago
March 16, 2020
2 replies
8 views

My child had some income in 2019 but was covered by my high deductible family health plan. I believe the child is eligible to contribute family HSA contribution of $7100 for 2019 as long as he is not tax dependent on me. In other words, I cannot claim him as my tax dependent. Pls validate this ?

Further if he files his own tax without my dependent on my 1040, how do I expense the college fee about $6K I paid in 2019? I also got the same amount ($6K) of distribution from his Education savings account (ESA). Should these amounts go in his 1040 filings?

BillM223

Level 15

The rule is that your child cannot contribute to an HSA if he/she COULD be claimed as a dependent. It is immaterial whether or not your child is actually claimed as a dependent; the test is on whether or not he/she could be.

"My child had some income in 2019" Did your child provide more than half of his/her own support? Please review the rules for a dependent starting on page 25 in IRS Publication 17.

I suspect that you will find that your child could be taken as a dependent, so there is no possible HSA contribution, and you might as well claim him/her as a dependent and take the education benefits, too.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

NCperson

Level 15

the college piece gets a little complicated. Please post the following and I will walk you through the math

1098T - Box 1 and Box 5
1099Q - Box 1 and Box 2
Any other expenses that are not on Form 1098T / Box 1 - think Room and Board, Books, Computer Related expenses
Confirm you are eligible for AOTC (joint income less than $160,000)

if you CAN claim him on your taxes, you will be better off; I will show you why when you provide the information above