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jjtapiav
Level 1

Do HSA contributions get considered for 1040 line 10a? As I understand it they are but they are not being considered in Turbotax calculation. 8889 is generated though.

I contributed up to my HSA limit in 2020, and Turbotax is generating Form 8889 with the right information. However when calculating my adjustments to income it is not including those contributions in form 1040 line 10a (I have no other adjustments here, so the line is completely empty).

I am using standard deduction otherwise in line 12. Did I misunderstand whether HSA contribututions are considered in line 10a or did I miss something when I gave turbotax the information?

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Accepted Solutions
BillM223
Expert Alumni

Do HSA contributions get considered for 1040 line 10a? As I understand it they are but they are not being considered in Turbotax calculation. 8889 is generated though.

HSA contributions made through your employer (these appear on box 12 on your W-2 with a code of W) are removed from Wages on boxes 1, 3, and 5.

 

This is because HSA contributions made through the employer (whether employer contributions or contributions that you made through payroll deduction) are not subject to federal income tax, Social Security tax, nor Medicare tax.

 

Therefore, you don't see a deduction anywhere on your return, because the HSA contributions have already been removed from your income.

 

No, this is not obvious, but you are indeed getting the tax benefit for the HSA contributions.

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1 Reply
BillM223
Expert Alumni

Do HSA contributions get considered for 1040 line 10a? As I understand it they are but they are not being considered in Turbotax calculation. 8889 is generated though.

HSA contributions made through your employer (these appear on box 12 on your W-2 with a code of W) are removed from Wages on boxes 1, 3, and 5.

 

This is because HSA contributions made through the employer (whether employer contributions or contributions that you made through payroll deduction) are not subject to federal income tax, Social Security tax, nor Medicare tax.

 

Therefore, you don't see a deduction anywhere on your return, because the HSA contributions have already been removed from your income.

 

No, this is not obvious, but you are indeed getting the tax benefit for the HSA contributions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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