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New Member
posted Jun 4, 2019 11:07:39 PM

Minnesota Nontaxable Income is Contributions to HSA considered part of nontaxable income?

contributions to medical expense account definition?

0 8 5088
8 Replies
Level 13
Jun 4, 2019 11:07:41 PM

Yes, HSA contributions are not taxable in Minnesota.

There is a screen in the Minnesota interview that asks about "Contributions to medical expense accounts".

The previous screen in the Minnesota interview should have showed the amount of your HSA contributions. If so, you do not need to enter anything in this line "Contributions to medical expense accounts" on the second screen.

The question is asking about contributions to a medical expense plan that isn't already accounted for on the federal return.

Level 2
Jun 4, 2019 11:07:42 PM

I was not asked for the HSA contribution in the first screen. Should I enter it into the second screen?

Level 13
Jun 4, 2019 11:07:44 PM

It appears that the interview has been changed.

First, on the screen that is headed "Let's Check for Minnesota Nontaxable Income", you need to answer "yes" to go through all the non-taxable income.

The next screen is headed "Let's Check for Minnesota Nontaxable Income". Towards the bottom of this screen, you will see the HSA contribution from the federal return (labelled "Health savings account deduction").

The next screen (page 2/2) asks about "Contributions to medical expense accounts". You should enter something here ONLY if you made after-tax payments to a medical expenses account and it wasn't reported on the previous screen.

New Member
Jun 4, 2019 11:07:45 PM

I'm having the same issue.  On page 1 of 2 it does not list my HSA contribution from the federal return - only 401k contribution.

New Member
Jun 4, 2019 11:07:46 PM

Having the same issue for the MN return. Should we enter HSA contributions in the medical expense accounts line?

New Member
Jun 4, 2019 11:07:48 PM

I'm seeing the same problem with the 2018 MN state tax return. Page 1 of 2 does not list my HSA contribution. On Page 2, should I enter my HSA contributions in the "Contributions to medical expense accounts" line?

Level 13
Jun 4, 2019 11:07:49 PM

It appears that the Minnesota interview has changed again. In any case, you should not enter any HSA contribution on your Minnesota return. Why? Because the Minnesota return starts with line 7 of the new 1040. This line already has both types of HSA contributions factored into it: the payroll deduction type of contribution was removed from Wages on your W-2, and any direct contributions are on line 25 of Schedule 1 (Form 1040), which factors into line 7 of the 1040.

NOTE: You will see the HSA line at the bottom of page 1 of the Minnesota non-taxable income screen ONLY if you made a direct contribution to your HSA. If you didn't make one (and many taxpayers don't because they contribute through payroll deduction), then this line won't appear. In any case, DON'T enter any part of your valid HSA contributions on your Minnesota return - they are already accounted for.

 

New Member
Jun 4, 2019 11:07:51 PM

Ah, makes sense. Don't need to list what is already accounted for somewhere else. Thank you for the explanation!