BillM223
Expert Alumni

Retirement tax questions

"Deduction   $984" - this means that you have an amount on line 13 on Schedule 1 (1040). This is a contribution made by you directly to the HSA custodian.

 

But you said earlier that you had made contributions through two different employers (which appears in box 12 of your W-2 with a code of your W-2s).

 

If you didn't make a contribution directly to your HSA custodian, then I am thinking that on the screen in the HSA interview where you are asked if you made any direct (personal) contributions to your HSA, that you entered 984 here, because it was the amount of deductions you made through a payroll deduction program, so you considered this "your" contribution.

 

The problem is that in the land of the IRS, any contribution made though your employer is considered an "employer" contribution, so adding part of the code W amount into that other line about personal contributions is double dipping, and likely to lead to excess HSA contributions messages.

 

And actually, it is good for you to contribute through your employer - because the code W amount is removed from Wages in boxes 1,3, and 5 on your W-2 before it is printed. That means that not only do you not pay income tax on that amount, but you also don't pay Social Security or Medicare taxes on it, either.

 

Is this what happened?

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