Should Distributions From Health Savings Accounts Be Reported As Untaxed Income On the FAFSA?
Award Year: 2024-25 KA-36739 Helpfulness Rating 901 page viewsThis guidance is specific to the 2024-25 award year and later. For 2023-24* award year guidance see AskRegs Q&A, Should Distributions From Health Savings Accounts Be Reported As Untaxed Income On the FAFSA?
No. Distributions from health savings account (HSAs) for qualified expenses are not reported as untaxed income on the FAFSA. Additionally, starting with the 2024-25 award year under the FAFSA Simplification Act, annual contributions to HSAs are not reported on the FAFSA, are not included in need analysis, and are not treated as other financial assistance (OFA) when packaging the student with Title IV aid.
See AskRegs Knowledgebase Q&A, What Untaxed Income Will Be Included On the FAFSA For Need Analysis In 2024-25 and Beyond?
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