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March 13, 2021
Question

Do I legally have to list my HSA account on my taxes if it was listed on my W2? My employer contributed a very small amount of money to the account.

  • March 13, 2021
  • 1 reply
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The only reason why I don’t want to list it is because I’d have to upgrade to deluxe and I don’t have the money to do so. It’s a very small amount of money in the HSA account and because of it I will have to pay 150 to file.

1 reply

March 13, 2021

Since a Health Savings Account is a tax-advantaged account, the IRS does require information be reported on your return with regard to contributions, distributions, and your eligibility to make a contribution to an HSA.

 

If the employer contribution to your HSA was included on your W-2 in box 12 with a code W, then when you file your return, the IRS will be expecting a corresponding Form 8889 as a part of your return to reconcile the contribution.  The IRS already has a copy of your W-2, so not entering the section reported in box 12 with code W will not eliminate the need for filing Form 8889 in the eyes of the IRS.  As a result, you will probably receive a letter requesting that you pay additional taxes on the contribution amount that was not reported and reconciled on Form 8889. 

 

Form 8889 includes information about contributions to your HSA as well as information about whether you were eligible to make a contribution to the HSA for the year.  There might be tax consequences on your return if all the requirements are not met and reconciled on Form 8889, which is why it is important to allow the correct TurboTax program to determine this.

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