topic I am seeing articles online that say your HSA contributions should reduce your adjusted gross income. That doesn't show true on any of my returns, is there a catch? in Get your taxes done using TurboTax

I am seeing articles online that say your HSA contributions should reduce your adjusted gross income. That doesn't show true on any of my returns, is there a catch?

hcreel83 — Mon, 15 Mar 2021 14:23:28 GMT

Contributions are deductible even if you do not itemize your deductions.

Re: I am seeing articles online that say your HSA contributions should reduce your adjusted gross...

AnnetteB6 — Mon, 15 Mar 2021 15:05:52 GMT

There is a bit of a catch. Assuming you meet the qualifications to make a contribution to your Health Savings Account (HSA), for the contribution to be deductible, you must have made the contribution directly to the HSA with after-tax dollars.

When contributions are made to your HSA through payroll deductions (reported on your W-2 in box 12 with code W), they are done with pre-tax dollars and therefore do not show on your tax return as a deductible contribution. Instead, your taxable income in box 1 of your W-2 is lower than it would have been without the HSA contribution.

Re: I am seeing articles online that say your HSA contributions should reduce your adjusted gross...

hcreel83 — Mon, 15 Mar 2021 16:20:40 GMT

That clears it up, thank you so much!