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The devil is in the details. (When isn't it?)

For example, regarding health insurance subsidies (mentioned in the article), deductible IRA contributions must be added back when calculating your income. As are other sources of income. E.g. tax-exempt municipal bond income doesn't count for Federal taxes but it does count for income limits for the health care subsidy.

Offhand, I'm not familiar with income limits for an HSA. It's quite likely that allowed income sources and deductions vary for these various programs.




> deductible IRA contributions must be added back when calculating your income

Not true. IRA/401k/HSA reduce MAGI for healthcare purposes. Do not confuse MAGI for the healthcare marketplace with MAGI on your tax return; those are two different figures.

https://www.healthcare.gov/income-and-household-information/...

https://www.healthcare.gov/reporting-deductions/


Ha. You're right about IRA deductions with respect to healthcare.

But I knew that I saw IRA being added back somewhere! It turns out I was thinking of FAFSA. IRA deductions are added back for computing income for financial aid purposes.

Tax exempt interest is added back for both healthcare and FAFSA.

That's why tax programs and tax accountants are essential. It's difficult for people who don't do this for a living to remember all of this.




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