topic Paid directly in Retirement tax questions

I made a contribution to my HSA of $4450.00 However the turbotax did no subtract the $4450.00 from my total income! How do we correct this?

joecool23147 — Sat, 01 Jun 2019 18:19:25 GMT

Your answers so far refer to prior yr excess contributions. I had no prior years excess contribution.

Was the HSA contribution withheld from your paycheck or d...

Rachel_W — Sat, 01 Jun 2019 18:19:26 GMT

Was the HSA contribution withheld from your paycheck or did you pay it directly?

Paid directly

joecool23147 — Sat, 01 Jun 2019 18:19:28 GMT

Paid directly

I recommend that you walk through the HSA interview quest...

Rachel_W — Sat, 01 Jun 2019 18:19:29 GMT

I recommend that you walk through the HSA interview questions once more. It is essential to go through and answer all of the questions so that your HSA information is reported properly.

In the search box, search for "hsa"
When the results populate, click the "jump to hsa" Link
From here walk through all of the HSA interview questions in TurboTax. You must indicate that you are covered by a high deductible health plan.

All hsa info is correct. Covered by hdhp as documents ind...

joecool23147 — Sat, 01 Jun 2019 18:19:30 GMT

All hsa info is correct. Covered by hdhp as documents indicate ‘HSA’. I recorded $4014 under HSALess Common income. $1014 of this was for approved medical expenses. I dont see this seperated out of taxable income.

Take a look at the HSA Summary (the first screen you see...

Rachel_W — Sat, 01 Jun 2019 18:19:30 GMT

Take a look at the HSA Summary (the first screen you see when doing the jump to link for HSA). Look at the Deduction amount. Is it the $4,450? If it's not, then it's not in the right place.

The deduction amount on the hsa summary page is $4450. In...

joecool23147 — Sat, 01 Jun 2019 18:19:32 GMT

The deduction amount on the hsa summary page is $4450. In the right place.

OK, Now look at line 25 on Schedule 1. if the $4,450 also...

BMcCalpin — Sat, 01 Jun 2019 18:19:33 GMT

OK, Now look at line 25 on Schedule 1. if the $4,450 also there? If so, then TurboTax DID subtract the HSA contribution from your income.

You can see Schedule 1 by looking to the left at Tax Tools (in the black column on the far left). Click on Tax Tools, then click on Tools, then in the box in the center, click on View Tax Summary, then back on the left, click on Preview My 1040. Be sure to scroll down far enough.

I am assuming that you are using the Online products, not...

BMcCalpin — Sat, 01 Jun 2019 18:19:34 GMT

I am assuming that you are using the Online products, not the desktop.

What is other taxes? $600? Does this mean there is a 20%...

joecool23147 — Sat, 01 Jun 2019 18:19:36 GMT

What is other taxes? $600? Does this mean there is a 20% tax on the $3000 hsa distribution not used for medical expenses?

Where do you see "other taxes" and "$600"? This is the fi...

BMcCalpin — Sat, 01 Jun 2019 18:19:37 GMT

Where do you see "other taxes" and "$600"? This is the first you have mentioned it.

Oh, do you mean to say that you had a $3,000 distribution...

BMcCalpin — Sat, 01 Jun 2019 18:19:38 GMT

Oh, do you mean to say that you had a $3,000 distribution that was not for qualified medical expenses? Then, yes, you pay income tax on it AND a 20% penalty.