Question

HSA Contribution from Health Insurance Company

Forum|Forum|4 years ago
February 3, 2022
1 reply
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Hi there! I participate in the UHC Motion program though my health insurance company (UnitedHealthcare) which allows me to earn money by hitting different fitness goals every day (FIT credits) that add up as wellness contributions on a quarterly basis. Every quarter, UHC Motion transfers those wellness contributions (FIT credits) directly to my HSA. The wellness contributions from UHC Motion are not included on my W-2, but they do show on my 5498-SA.

Do I need to include the wellness contributions from UHC Motion on my personal tax return? If so, which section do I need to include them under?

Thank you in advance for any assistance!

Not A Product Question

D

dmertz

Employee

This sounds like something that you would report as miscellaneous income and as a personal HSA contribution. The deduction for the HSA contribution would offset the miscellaneous income so there would be no change in your AGI, but the entry of the HSA contribution is necessary for Form 8889 to be prepared correctly.

Alternatively you could indicate that your employer told you about this amount of HSA contribution and that the employer did not include it on your W-2. The taxable result would be the same as above but the reporting of the amount would be on Form 8889 line 9 instead of line 2 and there would be no miscellaneous income to report or any HSA deduction.

K

Katej1213Author

So my fear with doing it the first way you suggested is that I'm afraid I will enter the information incorrectly within TurboTax. I may just have to do the option where I can talk to an expert, but I am worried that they may not know either because I really can't find any information on this type of contribution.

My question about reporting it the second way you suggested is this: would these contributions be considered an "employer contribution" because the credits that I earn by hitting goals each day are distributed on a quarterly basis directly from UnitedHealthcare Motion to my HSA account?

D

dmertz

Employee

It's probably more correct to report it the first way, but either way results in no change to your AGI and the sum of Form 8889 lines 2 and 9 agreeing with your Form 5498-SA.