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February 21, 2025
Question

I entered in my HSA contribution information, but in the tax break section it's showing zero contributions.

  • February 21, 2025
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    1 reply

    February 21, 2025

    The tax break section shows you ONLY the HSA contributions that were made by you directly to your HSA custodian.

     

    But most people make contributions to their HSA as a payroll deduction on their paycheck. This is the code W amount in box 12 of your W-2. These contributions do not show up as a line item (line 13 on Schedule 1 (1040)) on your return, because your employer already removed the code W amount from Wages in boxes 1, 3, and 5 when your W-2 was printed. 

     

    So your HSA contributions are a tax break because they were removed from your income, so you don't need a separate deduction on Schedule 1.

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