Deductions & credits

It is counter-intuitive but employee contributions to an HSA made through a salary reduction plan with the employer are called the employer contribution by the IRS. This is because both the contributions made by the employer and contributions made by the taxpayer through a salary reduction arrangement are treated the same way (they are both pre-tax).

 

"Deduction" on the HSA Summary screen refers only to the amount of contributions that you made to your HSA outside of your employer (i.s., not through the salary reduction plan). These would be after-tax dollars.

This amount will be deducted from your taxable income, appearing on line 12 of Schedule 1 (1040) (2019).

 

[Edited 3/23/2020 1:14 pm CDT - updated post]

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