Deductions & credits

I think that your issue isn't the 8889, but the number on line 13 of Schedule 1 (1040).

There are two types of HSA contributions (well, more than two, but for the vast majority of taxpayers, there are just two):

1. Contributions derived from payroll deductions, reported with a code W in box 12 on your W-2.

2. Contribution made directly to the HSA custodian, i.e., not through the employer.

Contribution #1 is removed from Wages in boxes 1, 3, and 5 on the W-2 when it is created. Thus, these contributions are never in your income, so cannot be a deduction (in tax terms, this might be called an exclusion). Contribution #2 is reported on line 13 of Schedule 1 (1040), and it is what you would call a deduction. It is very important not to confuse the two.

Pennsylvania does not tax either type of HSA contribution (page 20 of the PA instructions:( "Pennsylvania allows four deductions against income. Deductions are allowed for: ...Health Savings Account contributions...".

The first type flows to PA in the federal income on the PA-40, as modified by PA rules. The second type is reported on Schedule O. HOWEVER, since both types of contributions are clearly marked on the federal return, there is no need for the taxpayer to enter either one on the state return.

So, in amending your return, you must look to see if you have a code W entry in box 12 on your W-2 and if you have an entry on line 13 of Schedule 1 (1040). If you do, you have probably double-entered your contributions.

If the contributions were indeed on your W-2 with a code of W in box 12, then you probably also entered this amount as a "personal contribution" in the HSA interview. In this case, the thing to do is to remove the entry as a "personal contribution" in the HSA interview. This will remove the duplicate entry and the extraneous deduction on line 13 Schedule 1 (1040). It will NOT remove the 8889, but that form is not your problem - it is the entry on line 13, Schedule 1 (1040) that is your double deduction.

If I understand your situation correctly, please remove the duplicate entry as a "personal contribution" in the HSA interview, and don't do anything else. As I said, the 8889 is not your issue.