Deductions & credits

The HSA is handled in 3 parts in the TT program :

First the contribution:

In most cases, your HSA contribution has already been reported in Box 12 of your W-2 with code W: Employer Contributions to Health Savings Account.

Despite the misleading name, code W reports both your and your employer's contribution. (A better name would be "Contributions to Health Savings Account" but we have no say in the matter.)

So if you put $1,500 in your HSA and your employer matched your contribution, your W-2's Box 12 should have the amount of $3,000 with a code W.

Now, if you made HSA contributions not reported on your W-2 (this is uncommon), we'll ask about that when you step through the Medical section. Look for the questions Were HSA contributions made in 2021? or Do you need to make any adjustments to your HSA contribution amount? Answer Yes and we'll open a screen where you can enter that information.

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.  In the Deductions and Credits tab complete the HSA section of the Medical expenses area to indicate you were allowed to make the contributions.

 https://ttlc.intuit.com/community/health-care/help/why-am-i-showing-an-excess-hsa-contribution/00/26...

And lastly any distribution:

Here's how to enter your 1099-SA form:

1. Click on Federal Taxes > Wages & Income    [In TT Self-Employed:  Personal > Wages & Income > I'll choose what I work on].
2. In the Less Common Income Income section, click on the Start/Revisit box next to 1099-SA, HSA, MSA.  
3. Continue through the interview, entering the information contained on your 1099-SA.

To enter medical expenses in TurboTax, please follow these steps:

1. Click on Federal Taxes > Deductions & Credits  [In TT Self-Employed:  Personal > Deductions & Credits > I'll choose what I work on].
2. In the Medical section, click on the Start/Revisit box next to Medical Expenses.  
3. Continue through the interview, entering the requested information on your medical expenses.
4. You will be asked to confirm the amount you withdrew from your HSA/MSA to pay for medical expenses.