Deductions & credits

You enter the payroll contribution on your W-2. Your W-2 should have in box 12 a code W with the 4,300. If it doesn't, talk to your employer and get a corrected W-2. This code W amount will carry automatically to the HSA interview and the rest of the return.

In the HSA Interview, there will be a screen, "Let's enter [your name]'s HSA contributions". On this screen there are two lines. The first is the "employer" contribution (actually, anything with the code W on your W-2), and the second line is for your "personal" contributions, that is, any contributions you sent directly to your HSA, not through your employer.

Next, there have been some issues this year with the interview, so I suggest that you delete the 8889 before continuing. However, if you have HSA contributions through your employer, you will have a code W in box 12 on your W-2, which complicates things. So let's do an "HSA Reset" to remove all HSA data from your return so you can start fresh. See HSA Reset at the bottom.

After you finish the HSA Reset, then go to Deductions & Credits->Medical->HSA, MSA, 1099-SA and click on Start (Update). This will take you to the front door of the HSA interview. Be sure to go all the way through the interview until you arrive at the screen HSA Summary.

As an aside, HSAs are some of the best tax advantages that the IRS (well, Congress) provides, because you save taxes on the money going in, and if you spend the money only on qualified medical expenses, the money going out will also be tax-free.

HSA Reset

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop/Windows***

3. Go to the upper right and click on Forms, and 

4. Select the desired form(s) (1099-SA (if one), 8889-T, and 8889-S (if one)). Note the Delete Form button at the bottom of the form’s screen.

*** Desktop/Mac***

3. Switch to Forms Mode by selecting the Forms icon.

4. From the menu, select the form(s) (1099-SA (if one), 8889-T, and 8889-S (if one)) you want to remove (if you don't see it, select Open Form at the top). From the Forms menu, select Remove [form name].

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form 

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and restart the entire HSA interview....