The Wisconsin tax return wants me to enter an amount for "HSA contributions taxable in Wisconsin." It's not clear to me what, if anything, I would enter into this field?

[taxmax32]

It says if our high deductible health plan allows for telehealth or other remote care services payments, without regard to the annual deductible, you may be required to add back to Wisconsin income HSA contributions that were excluded from federal income. Any help or guidance to navigate this would be greatly appreciated.

[DMarkM1]

You will need to contact your HSA plan administrator to find out if your high deductible health plan allows for telehealth or other remote care services payments prior to meeting your deductible.  If that turns out to be the case, then you must add back to Wisconsin income the HSA contributions made after March 31, 2022 that were deducted from federal income.  

You could ask the HSA administrator what the amount paid after Mar 31st is or you can divide your annual contribution amount by 12 and multiply by 9 to get the amount paid Apr- Dec.  

[taxmax32]

Thank you for the feedback and suggestions. I did confirm with our HSA admin that our plan does allow for telehealth and another remote services payments prior to meeting our deductible. Just to confirm, this means I need to add my HSA contributions made after March 31, 2022 back to WI income, regardless of whether I actually used telehealth/remote services (which I did not)? It seems more logical that any telehealth or remote services that were rendered would be subject to being taxed in WI, and not the entire HSA contributions. 

[JohnW152]

That's correct. 

It's not relevant whether you actually used the telehealth or remote care services, only whether such services were a feature of the program.

Please see 30, Health Savings Accounts for High Deductible Health Plans in the 2022 Wisconsin Schedule I Instructions for more information.

[partychips]

I have the same question and the law mixed with the plan terminology doesn't seem very clear. According to my HSA plan, telehealth services are covered once I meet the deductible. If I choose to use the service prior to meeting my deductible, I would have to pay 100% out of pocket. Does that mean I don't have to claim HSA contributions as taxable in Wisconsin? 

Thanks for your help! This new law is confusing 🙂 

[BillM223]

The question is not how your use it, but how the plan is written. In short, if your plan allows televisits to be paid from the HDHP (whether or not you use this feature) before the deductible is met, then contributions from April through December are not deductible in Wisconsin.

The only way to avoid claiming the HSA contributions as taxable in Wisconsin (in this circumstance above) is not to have made any,

[bbk4]

As of October of 2023, it appears that WI ACT 35 has corrected the difference between the IRS rule and WI law with regard to HSA contributions taxable in WI as it relates to availability of telehealth services.  However, it also appears TurboTax has not updated their software to address that as of Jan. 2024.

[BillM223]

1. I agree that Wisconsin has changed its law to match the US law vis-a-vis HSAs. See Wisconsin statutes.

2. The HSA stuff in Wisconsin was on Schedule M (Additions and Subtractions from Income). However Schedule M is not scheduled to be released in TurboTax until later this month. See State Forms Availability.

I am hoping that when Schedule M is released, that this will be part of it.