When I enter the HSA interview checkbox showing i am eligible for HSA High Deductible plan and my W2 box 12 d code w of $1800 is added to 8889, that exact amount is carrying over to 1040 line 8 as additional income. I have read threads and not understanding why this is still being considered as taxable income. I understand 12d code w includes both employer and employee contributions and that the overall w2 box 1 does not include the HSA contributions. However, how do i make TT remove this HSA amount from being taxable on 1040 line 8?
