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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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I have $20,000 income from social security and $60,000 from

Customer Question

I have $20,000 income from social security and $60,000 from my IRA. I have made an HSA contribution of $2,900 and have a $3000 loss on carry over from investment stock market investments.
Are the HSA contribution and the capital loss carry over included in the MAGI?
I want to keep my magi below 85,000 to avoid higher Medicare premiums. (I am a single taxpayer.)
However, I can take a little more out of my IRA if these deductions are not added back to the agi.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

$3000 allowed capital loss deduction on carried over from previous tax periods will reduce your AGI and MAGI.
Regarding HSA contributions - these are ONLY allowed if you are covered under a high deductible health plan (HDHP) and have no other health coverage except what is permitted.

Thus if you are covered by Medicare - HSA contributions are NOT deductible.

Expert:  Lev replied 1 year ago.

See IRS publication 969

https://www.irs.gov/pub/irs-pdf/p969.pdf

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

You must be covered under a high deductible health plan (HDHP) on the first day of the month.

You have no other health coverage except what is permitted.

You are not enrolled in Medicare.

You cannot be claimed as a dependent on someone else's 2014 tax return.

.

So far - your gross income will include

85% of 20,000 social security benefits = $17,000

$60,000 IRA distribution

minus $3000 deductible capital loss

total - $74,000

that would be your estimated AGI.