Is the W-2 for yourself or your spouse? I assume it is for your spouse since you say they are the one who contributes to an HSA. I also assume the HSA is a family plan due to the contribution amount. Let's validate your entries:
- After entering your spouse's W-2 with the Code W in Box 12, it should have asked Did any of your HSA contributions go into your (the taxpayer's) account? Answer No.
- This should have opened an area on your tax return for HSAs. If you do not see it, go to Federal > Wages & Income > Less Common Income > 1099-SA, HSA, MSA and click Start/Revisit.
- Make sure your spouse has HSA selected.
- If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
- Assuming your spouse did not inherit this HSA, select No.
- Under Let's enter your HSA contributions your spouse's employer amount should already be in there from the W-2. Unless you made additional contributions, leave Any contributions you personally made blank. Please do not re-enter your $7,200 contribution here as that has already been accounted for by the amount on your W-2.
- Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen. If your spouse had family coverage the entire year, you should not be penalized for excess contributions.
Once you enter it this way, the HSA contribution should not be added to your income. If any of my assumptions are wrong or if this does not work, please let us know.
@RogerT
