How do I deduct after-tax HSA contributions?

[jmully-forbes]

My husband has pre-tax contribution and I have after-tax but, we both received 1099-SA with HSA marked.

[MichaelDC · Accepted solution]

Please follow the instructions below for entering in your HSA contributions below if you are using TurboTax Online (except Home & Business version):

1.      Click on Federal Taxes

2.      Click on Deductions & Credits

3.      Look in your list for HSA, MSA Contributions and go to step 6; otherwise, continue to step 4

4.      Click on Jump to full list

5.      Click Show more next to Medical

6.      Click Start/Edit next to HSA, MSA Contributions

7.      Follow through the prompts, when you get to the screen that says Enter Your HSA Contributions, you can put additional contributions made after-tax from your own funds (take home pay, savings, etc.) as All Other Contributions.

8.      This page will automatically pull in your W-2 contributions from you and your employer that were pre-tax.

9.      Complete the rest of the related interview questions

Please follow the instructions below for entering in your HSA contributions below if you are using TurboTax Desktop (or TurboTax Online Home & Business):

1.      Click on Federal Taxes (Personal, if using Home & Business)

2.      Click on Deductions & Credits

3.      Select I'll choose what I work on

4.      Scroll down to Medical and click on Start/Update next to HSA, MSA Contributions

5.      Follow through the prompts, when you get to the screen that says Enter your HSA Contributions, you can put additional contributions made after-tax from your own funds (take home pay, savings, etc.) as All Other Contributions.

6.      The page will automatically pull in your W-2 contributions from you and your employer that were pre-tax.

7.      Complete the rest of the related interview questions

[balkharr]

This did not work for 2021. I went back and forth to get this done in online Turbotax but it's not deducting the taxes.  I contributed 7100 post tax and withdrew it back, my form 1099-SA shows the total amount funded including the post tax amount. when I continue as per these instructions and add back the amount I deposited post tax, there is no tax being credited.  for 7100 non- medical withdrawal, I'm taxed $3000 !  and that $3000 is not coming back when I add the 7100 as self contribution.  Confusing !  

[BillM223]

Are you saying that you contributed 7,100 to your HSA (outside of your employer), then turned right around and withdrew it? Did you get a message from TurboTax that you had excess contributions? Why did you withdraw the 7,100?

What are you trying to do?

[LuckMagnet]

Do you (or anyone) know how to enter after-tax HSA contributions in the PC software, as opposed to online? For Home & Business, in my case? I can only seem to find where to enter pre-tax contributions (which then adds federal tax due rather than act as a deduction).

Thanks.

[AnnetteB6]

Use the following steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner) 
• This opens a box where you can type in “hsa” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to hsa”
• Click on the blue “Jump to hsa” link 

As you go through the screens related to your HSA, there will be one titled, 'Let's enter your HSA contributions' with a box to enter contributions that you personally made (not through your employer).  After tax contributions entered here will be reported on Form 1040 Schedule 1 line 13 as a deduction.  But first, you will need to finish going through the HSA section to be certain that you are eligible to make a contribution to the HSA.

@LuckMagnet

[LuckMagnet]

Thanks. After I posted, that's exactly what I did and it worked. When I entered my contributions the first time through, TurboTax treated them as pre-tax contributions and my total tax due skyrocketed. But, after I went back and edited, TurboTax treated my contributions as an after-tax deduction. Very unintuitive and poorly-designed but it worked.

Thank you for taking time to reply to my question and a double-thank you for the correct answer! Hopefully it will help others who might encounter the same issue.

[wtwang]

I am using TT Premier,  and your steps works up to Click on the blue “Jump to hsa” link.

After that, it shows my HSA summary. And I couldn't find 'Let's enter your HSA contributions' (see picture below).

Is this due to the TT version (Premier) is different ?

Any suggestions for TT Premier?

Thanks.

[RaifH]

No, TurboTax Premier is not different. You are seeing a different screen because you have already made some entries regarding your HSA. From there you should be able to click on Edit in the lower right and it will take you back through the HSA questionnaire. A few questions in, after entering your distributions, you will get to the Let's enter your HSA contributions screen. 

@wtwang