According to the tables at https://www.irs.gov/credits-deductions/ ... itc-tables there is no direct W2 test, rather you must meet the AGI test and not have more than $11K in investment income in 2023. So anything that reduces AGI, provided you meet the investment income test, helps.EITC tests on both your w2 income and your AGI
Contributing to a traditional IRA will reduce your AGI, but not your w2 income. Contributing traditional to your 401k, and/or to an HSA thru payroll, will reduce both w2 income and AGI.
You can contribute to a HSA outside of a payroll deduction. If in 2023 the OP was covered by a HDHP then they can still make a HSA contribution before this year's tax deadline (April 15) provided they haven't hit the family maximum for 2023. See https://livelyme.com/blog/prior-year-hsa-contribution
Both an IRA contribution or a HSA contribution outside of payroll help meet the EITC limits. The OP can verify this by using the IRS estimator at https://www.irs.gov/credits-deductions/ ... -assistant
Statistics: Posted by miket29 — Wed Mar 20, 2024 10:41 pm — Replies 6 — Views 306