Question

I thought hsa contributions were pre-tax dollars and were not supposed to be included in income on W2's. They don't appear to be excluded from income on my W2.

Forum|Forum|7 years ago
June 5, 2019
1 reply
0 views

No text available

TurboTax Deluxe Online

Employee

To keep Code W HSA deferrals out of income, Form 8889 must be completed. Pretax eligibility is only determined on your tax return, so Turbo Tax puts the amount in income until you complete the necessary questions about your eligibility to have one. (Normally a person enters the W2 all at once, so wouldn't notice this)

Go to:

Federal Taxes
Deductions and Credits
Medical
1099-SA, HSA

You would be prompted to visit this section, but may as well do so now. When you complete the HDHP questions and verify your total HSA contributions, the amount "added back" will come right off.

G

glgohdesAuthor

Form 8889 Line 11 reflects the employer contribution to the HSA, but then that gets subtracted from Line 8 and the only amount that gets carried forward to Form 1040 Line 25/36 is the additional contribution that we made which is then subtracted from the income. It appears that no where in this process is the employer contribution carried forward from Form 8889/worksheets to be subtracted from income.