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May 5, 2021
Question

Should get benefit for contributing in HSA account, however when I enter HSA amount in "W-Box12". It increases the tax amount. Cant understand why ?

  • May 5, 2021
  • 1 reply
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Employee
May 5, 2021

Just keep going and ignore the refund meter. When you enter an HSA contribution through box 12, TurboTax assumes that it is taxable until you get to the following questions that ask whether you had qualifying health insurance for the year. Once you indicate that you did have a qualifying health plan that makes you eligible for HSA contributions, it will be removed from your taxable income again.  I believe there is a question about health insurance as part of the W-2 interview after you enter an HSA amount, or you can access the health insurance questions in the HSA interview on the deductions and credits page.

Critter-3
May 5, 2021

The HSA is handled in 3 parts in the TT program :

First the contribution:

https://ttlc.intuit.com/replies/4557768

https://ttlc.intuit.com/replies/4785646

                                  

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/replies/4788059

                                            

And lastly any distribution:

https://ttlc.intuit.com/replies/4787864