AnnetteB6
Expert Alumni

Deductions & credits

The following information will explain how TurboTax handles the HSA contribution information  Entering information into your return regarding HSA contributions is a two-step process.  Each step is likely to cause the refund/balance due number to change because TurboTax constantly updates the calculations as you go through the return.  

 

The first step occurs when you enter your W-2 which includes contributions to the HSA.  After entering the information from your W-2, the amounts contributed to the HSA are included in your income (thus causing a higher balance due or lower refund).  

 

Then, the second step is to verify your eligibility to contribute to the HSA due to coverage under a High Deductible Health Plan.  This results in the HSA contribution being removed from your income since you were eligible to make the contributions.  Therefore the balance due amount will drop or the refund amount will increase.  

 

If you did not see the change in your refund or balance due after completing the second step in the process, you should revisit the HSA section of your return.  Pay close attention to any messages on the screen in case you are in a situation where the contribution was not allowed.

 

You can use the magnifying glass at the top of the screen to search for 'hsa' or go to Deductions and Credits > Medical > 1099-SA, HSA, MSA and click Update to go through that section again.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post