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Level 2
January 26, 2022
Question

Using Windows ver of home and business. When i enter W2 for W-Employer contribution to Health Savings the app is applying a tax to the federal gov.It should be tax free

  • January 26, 2022
  • 2 replies
  • 22 views
is there a reason its being taxed? on the IRS website shows this is tax free. How can this be correct. Its on my w2 so i should enter it.

2 replies

Critter-3
Level 15
January 26, 2022

Keep going ... the contribution will be considered fully taxable until you complete the HSA section later in the Medical expenses section of the Deductions & Credits tab.   And if you took out any distributions the 1099-SA must also be entered.   

jducker99Author
Level 2
January 26, 2022

ok thanks, i asked my employer if a 1099-SA was created.

Its not within the w2 assuming its stored someplace else if required

Level 4
January 26, 2022

Fill out Form 8889 and your HSA contribution in box 12 code W should come off the Form 1040 as other income and should reflect no additional tax.

Critter-3
Level 15
January 26, 2022

The 1099-SA comes from the HSA administrator not the employer.   See if they have it online ... log into your account. 

jducker99Author
Level 2
January 26, 2022

ok thanks ill look that should help to look for it

Just started so no clue where things are stored