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Can any explain to me how to correct the fact that my $7,200 HSA contribution (code W on Box 12 of my W2) is not being carried as a deduction to 1040 Schedule 1?

 
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2 Replies
RaifH
Expert Alumni

Can any explain to me how to correct the fact that my $7,200 HSA contribution (code W on Box 12 of my W2) is not being carried as a deduction to 1040 Schedule 1?

You are not getting the deduction on your tax return because you have already received the deduction. Contributions to an HSA through your employer reduces your taxable income on your W-2. It reduces Boxes 1, 3, and 5 of your W-2 so you are already paying less federal income tax, social security tax, and Medicare tax. 

 

You only receive the deduction on Form 1040 if you contribute out-of-pocket to your HSA. That is not as effective as contributing through your employer since it does not change your social security or Medicare taxes. 

RaifH
Expert Alumni

Can any explain to me how to correct the fact that my $7,200 HSA contribution (code W on Box 12 of my W2) is not being carried as a deduction to 1040 Schedule 1?

You are not getting the deduction on your tax return because you have already received the deduction. Contributions to an HSA through your employer reduces your taxable income on your W-2. It reduces Boxes 1, 3, and 5 of your W-2 so you are already paying less federal income tax, social security tax, and Medicare tax. 

 

You only receive the deduction on Form 1040 if you contribute out-of-pocket to your HSA. That is not as effective as contributing through your employer since it does not change your social security or Medicare taxes. 

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