As stated earlier, the Deluxe version of TurboTax supports Form
8889 which is required to be filed
when you make contributions to a Health Savings Account (HSA). It is in your best interest that you upgrade to Deluxe in order to file your return properly.
If your HSA contributions were made through payroll deductions and
are reported on your W-2 in Box 12 with Code W, then you have already received
the tax benefit of the contribution because the money placed in the HSA was
pre-tax money. If you made separate
contributions outside of payroll deductions, then the contributions will be a
deduction on your tax return.
No matter how the contributions were made to the HSA, you are
required to file Form 8889 and to go through the section of your return to
confirm that you were eligible to make the contributions. If you do not do so, you can expect to be
contacted by the IRS for not filing Form 8889.
