TurboTax Premier 2024 calculates HSA as taxable

Forum|Forum|1 year ago
April 5, 2025
1 reply
0 views

I am using TurboTax Premier 2024 and when I enter the W2 with 12c W for employer contribution to HSA, TurboTax calculates taxes on it and my tax due is increased. As I know, HSA is not taxable. Is there a bug in TurboTax Premier 2024? I did update the software, but the problem is still there. Any helps would be appreciated.

MindyB

If, after entering your HSA contributions, you owe more tax, it seems that the software may think you do not have a high deductible health plan. Ensure that you have indicated that you do:

Click on Federal Taxes, Deductions & Credits
Choose "add/edit" HSA, MSA Contributions
You will see a page titled "Your HSA Summary" which will show any deductions already computed from your W-2
Choose Edit, Check the box for HSA, Continue
You'll now see a screen that says "Here's what we have so far" with the information from the 1099-SA, choose "Edit"
Review the information in the next few screens for accuracy
Next, you will be asked if you were covered by a High Deductible Health Plan (HDHP) in 2024? You need to have been covered the whole year to be allowed to make the maximum HSA contribution

If that looks correct, print your return to pdf and find Form 8889. Line 13 should be the amount of your contribution. Line 16 should be $0 if you spent all the distributions on medical expenses.