Question: I have had an Individual HSA plan for years and probably will select one if available in Oct. When I estimate my MAGI for 2014, should I include my annual HSA contribution in the figure or will this not be tax deductible anymore?
Answer: Thanks to Max Herr’s very informative comment on my previous HSA entry. I have your answer. Your 2014 HSA contribution will be added back onto your AGI to make up your MAGI for the purpose of calculating your tax credit. That will lower your credit and may even cause it to disappear. So I’d recommend that you do not take your tax credit in advance and you may find that you have an unused tax credit once you do your 2014 taxes. That pleasant surprise would be easier than paying the tax man a surcharge.