Hello Folks, Looking to clear up some confusion. I had IRA contributions and also had HSA contributions in addition to 401K. Understand the 401k has to be untaxed income. However the IRA is coming out of my own funds as my wife does not work and same is HSA as it was contributed not through work but an outside entity so my W2 already includes the amounts for both of those. Should I still have to list all 3 in Untaxed income or only the 401K contributions. When I did the data transfer the 401K contribution did not come over. The HSA deduction also did not come over but the IRA deduction was brought over. I was trying to understand how I would list those 3 on the form. In my mind I need to list only the 401K but because the IRA contribution came over not sure if I should overwrite it. I wanted to understand what others have done or think. Tried calling the FSA helpline but they were not able to clear it up. Thank You for the help.
For FAFSA:
Pre-tax 401(k) contributions obviously get reported on FAFSA, but the IRS retrieval tool will not bring them over because they are not included anywhere on the tax form.
Traditional IRA contributions are reported on FAFSA if they are claimed as a tax deduction, and this is why the IRS retrieval tool brings them over: they are on the tax form.
HSA contributions are not reported on FAFSA unless they are included on line 25 of IRS form 1040.
The HSA and IRA contributions were presumably subtracted on page 1 of your 1040 to arrive at adjusted gross income, thus are “untaxed income” items that need to be added back to calculate FAFSA EFC.
I did have HSA contributions on line 25 , where should those go, added to the 401k or any other question. I realize if they start with AGI the need to add it back, The income section showed the pre income also and the AGI but can see where they start with AGI and add back the deductions. thank you
HSA contributions that are included on line 25 of the IRS form 1040 need to be reported on FAFSA line 94.i. - parent other untaxed income.
Thank you, that helps very much.
I think the 401k contributions are reported in question 94a.
https://fafsa.ed.gov/fotw1617/help/pTotalDeductionsIRA.htm
IRA contributions according to this link are brought over with DRT, or can be entered in question 94b