- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
"the deductions summary screen"
The summary screens that are in the TurboTax interview don't necessarily show you what you think they might.
For example, There are two ways for HSA contributions to be a tax benefit: (1) as an exclusion from income, and (2) as an adjustment to gross income. The difference is where these things happen.
When you show HSA contributions on your W-2 in box 12 with a code of W, this is an exclusion, in that this code W amount is removed from Wages in boxes 1, 3, and 5 before your W-2 is printed. Because the HSA contribution is never IN your income, it doesn't show up as a deduction anywhere.
On the other hand, there is on line 13 of Schedule 1 (1040) an actual HSA deduction from gross income. This is for any contributions you make directly to the HSA custodian, not through your employer.
What's the difference? The exclusion on your W-2 is ALSO an exclusion from Social Security and Medicare taxes, whereas the deduction is only from federal income tax. So not only is the payroll deduction easy, it also saves you more money than the deduction does.
That Summary screen dhows only the deduction and not the exclusion. Evidently you had a $390 deduction in 2020 but no deduction for 2021, because all of your contributions were through your employer, which is better for you.
As for the State and Local taxes, I don't know what number it is showing, but as with the HSA, the only numbers that mean something are the numbers on your tax return. After you do your state, go look at those State and Local numbers again - they will probably be different.
**Mark the post that answers your question by clicking on "Mark as Best Answer"