Does my tax return decrease when you have to show HSA on return?

chefhunt65279 — Mon, 09 Mar 2026 22:17:50 GMT

This year my return decreased tremendously from previous years and I don't understand why.

Re: Does my tax return decrease when you have to show HSA on return?

AnnetteB6 — Tue, 10 Mar 2026 12:46:32 GMT

Entering information into your return regarding HSA contributions is a two-step process. Each step is likely to cause the refund/balance due number to change because TurboTax constantly updates the calculations as you go through the return.

The first step occurs when you enter your W-2 which includes contributions to the HSA. After entering the information from your W-2, the amounts contributed to the HSA are included in your income (thus causing a higher balance due or lower refund).

Then, the second step is to verify your eligibility to contribute to the HSA due to coverage under a High Deductible Health Plan. This results in the HSA contribution being removed from your income since you were eligible to make the contributions. Therefore the balance due amount will drop or the refund amount will increase.

If you did not see the change in your refund or balance due after completing the second step in the process, you should revisit the HSA section of your return. Pay close attention to any messages on the screen in case you are in a situation where the contribution was not allowed.

Go to Deductions and Credits > Medical > 1099-SA, HSA, MSA and click Update to go through that section again.

topic Does my tax return decrease when you have to show HSA on return? in Deductions & credits

Does my tax return decrease when you have to show HSA on return?

Re: Does my tax return decrease when you have to show HSA on return?