topic Hsa in Deductions & credits

Hsa

Cs8lee — Sat, 27 Feb 2021 23:40:00 GMT

I noticed my cpa filed 8889 amount less than my 5498sa in 2019 tax.

Is this ok since amount deduction from tax was less actual contribution amount? Or does it need to match exactly 5498sa?

Thank you in advance

Re: Hsa

dmertz — Sun, 28 Feb 2021 13:40:35 GMT

The reporting on a 2020 Form 5498-SA is confusing because box 2 reports contributions made in 2020, not contributions made for 2020. To determine the amount contributed for 2020 you must add box 2 to box 3 of your 2020 Form 5498-SA and subtract the amount in box 3 of your 2019 Form 5498-SA.

Re: Hsa

Cs8lee — Sun, 28 Feb 2021 19:23:06 GMT

Thank you for your reply. Yes, I noticed that it was calculated wrong and my CPA had put the deduction amount on 8999 less than 5498-sa because he did not add box #3 in 5498-SA and only put BOX #2 as a deduction on 5498sa. He also did not minus box3 from the previous year. After correct calculation, it is about $2000 difference and tax was last year for 2019. Would I need to file 1040x to correct the deducted amount in 8889 for hsa to match the 5498sa or since it was reported less than the original contribution amount, can I just let it be and would not cause any problem down the road since it was reported under the 5498-SA actual contribution amount? If it does not cause any problem, I would like to leave as it is as tax is for 2019 tax. Any info will be greatly appreciated. Thank you

Re: Hsa

dmertz — Sun, 28 Feb 2021 20:33:39 GMT

If the 2019 Form 8889 is wrong, amending it would require filing Form 1040-X and the corrected 2019 Form 8889. If the underreported amount is of a personal HSA contribution filing the amendment would likely result in a tax refund. You should at least prepare the corrected Form 8889 to see if it results in a tax refund or if it shows an excess contribution before deciding whether or not to file the amendment. I'm not going to offer an opinion on whether you should file the amendment or not.

The opinion that I will offer is that a CPA should not have made this mistake.