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Fitzer1
New Member

HSA Contributions and Itemized deductions

Unlike 2022, Turbotax 2023 isn't applying HSA contributions as deductions when itemizing deductions.  It only appears to be applying them when taking the standard deduction.  

 

https://www.irs.gov/publications/p969   States the following:

An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions aren’t included in income. Distributions from an HSA that are used to pay qualified medical expenses aren’t taxed.

 

This means the contributions should be taken into account either way, not just as part of the standard deduction calculation.

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1 Reply

HSA Contributions and Itemized deductions

you are correct. did you complete the HSA worksheet under medical expenses? 

if all contributions come through your employer either yours and/or employer's there is no deduction on your return. Your contributions reduce taxable wages in box 1 of w-2. Employer contributions (re a tax-free fringe benefit. amounts contributed through payroll deductions and employer match. show up as code 12W on your W-2 and are not to be entered as personal contributions.  They show up on line 9 of the form 8889. The only proviso is that you are subject to a limit based on numerous rules. 

 

 

if contributions are made directly by you to the HSA they get entered on the Turotax worksheet for which you will get a deduction subject to the same limits and rules as if made through your employer. amounts 

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