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June 3, 2019
Question

Received corrected W2 & edited employer contribution to cafe 125 HSA in box 12 from 1500 to 3500, but TT still shows original 1500 in medical deductions section. Fix?

  • June 3, 2019
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    1 reply

    June 3, 2019

    The HSA contributions should not appear in the "medical deductions section". But see below.

    Let me tell you how this is supposed to work.

    When you make contributions through your employer (or your employer does, or both), then this amount is reported with a code W in box 12 on your W-2. This amount is not reported anywhere on the return, except on line 9 on the form 8889.

    This is because before your employer prints your W-2, the code W amount is removed from Wages in boxes 1, 3, and 5. The reason that there is no apparent deduction is because your HSA code W contribution was never in your income in the first place.

    If, on the other hand, you make contributions directly to the HSA, this amount is placed on line 25 of Schedule 1 (Form 1040), to be an adjustment to gross income.

    I am not sure what you mean by "medical deductions section".

    If by this you mean on the Deductions & Credits screen, the number that appear next to the Start or Revisit button for HSA MSA 1099-SA is actually the amount that appears on line 25 of Schedule 1, that is, the amount that you paid directly to the HSA. The code W amount does not appear here.

    I would be happier if you would delete the old W-2 and add the new one. No, you shouldn't have to, but there are times that it is better to start from scratch than try to edit.

    If by "medical deductions section" you meant something else, come back and tell us in the comments.

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