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Deductions & credits
The HSA tax break appears in two different ways.
1. As code W in box 12 on the W-2.
In this case, the dollar amount with code W is removed from Wages in boxes 1, 3, and 5 on your W-2 before the W-2 is printed. There is no HSA deduction on the tax return because those HSA dollars were never in your income in the first place. Note that the code W amount is the sum of what your employer contributed to your HSA AND what you contributed through payroll deduction.
2. As an above-the-line deduction on line 12 of Schedule 1 (1040). This is the sum of HSA contributions that you made directly to the HSA (i.e., not through your employer).
In neither case could you have legally gotten a $3,850 tax break for your HSA if you had Self-only HDHP coverage.
"Looking at the 2019, it is not on line 12."
OK, where was it? What form? What line? It was supposed to be on line 12 - but see above.
"TurboTax is showing no tax break for it in 2020. Why not?"
Please see my explanation above. It is common for taxpayers who made direct contributions one year to think that there was no tax break the next year when they switch to employer contributions, but there really is.
In fact, when you switch to employer contributions, it's even better than you imagine. As I noted above, the code W amount is removed from Wages in boxes 1, 3, and 5, which means that not only do you not pay federal income tax on the contributions, but you also do not pay Social Security or Medicare taxes on the same contributions - an additional savings of 6.2% of the HSA contributions.
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