BillM223
Expert Alumni

Deductions & credits

What kind of HDHP coverage do you have? Family or Single (yes, you each could have separate HDHP policies from different employers).

 

Do you have just one HSA or two (you each could have one, because they are owned by the individual)?

 

You have a code W amount of $8.000? Did you put any of that on the second line on the screen headed "Let's enter [name]'s HSA contributions"? All contributions reported on the W-2 are considered the "employer contribution", and you are not to enter any part of this amount into the "personal" contribution line. So if you entered $6,800 on that line - that's your issue.

 

Besides, you want it to work this way - the code W amount is removed from Wages in boxes 1, 3, and 5 before your W-2 is printed. This means that not only do you not pay federal income tax on this amount, but you don't pay Social Security or Medicare taxes on it either. This is a tax break that most taxpayers are unaware of.

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