Deductions & credits

To follow up on Annette's comments, HSA contributions work two ways:

If your employer made HSA contributions or you did through payroll deduction, then this total appears with a code of 'W' in box 12 on your W-2. In this case, when your W-2 is printed, the code W amount is removed by your employer from Wages in boxes 1, 3, and 5. This means that there is no deduction for the code W amount, because it was never in your income in the first place.

If you made HSA contributions directly to the HSA custodian, then this amount appears on line 25 on Schedule 1 (Form 1040).

NOTE: on the Tax Breaks page (otherwise known as the Deductions & Credits screen), ONLY the line 25 amount is shown. You will not see the code W amount any place else on the return except on line 9 on form 8889.

This is confusing for many taxpayers, but just know that if your HSA contributions are part of the code W amount on the W-2, then they are not supposed to show up on your Tax Breaks screen - but they are a tax break just the same.