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andrew_johansen
Level 2

HSA Contributions Form 8889 confusion - double deduction?

I’m confused about reporting HSA contributions..
 
It’s my understanding that Box 1 on the W-2 is Wages earned minus contributions I made to my HSA that was pulled out from my paycheck
 
However, it seems you report those contributions on form 8889 as well.
 
This doesn’t make sense to me because that would be kind of like a “double deduction”:
 
1. one from the decreased wages that get reported on the W-2 and,
2. the other from the adjustments to income line on the 1040 that comes from Form 8889
 
Can someone clear this up for me? I have a feeling I’m not understanding Form 8889 properly.
 
Thanks.
 
Side note: If my understanding is correct about Box 1 on the W-2 being wages earned minus contributions I made to my HSA, do I reduce my wages by what my employer matches in HSA contributions as well?
2 Replies
Critter-3
Level 15

HSA Contributions Form 8889 confusion - double deduction?

On the W-2 in box 12 the HSA contributions are listed as code W and that amount is not in box 1 already so you don't get to deduct them again ... follow the program instructions carefully.  

 

The HSA is handled in 3 parts in the TT program :

First the contribution:

https://ttlc.intuit.com/replies/4557768

https://ttlc.intuit.com/replies/4785646

 

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/replies/4788059

 

And lastly any distribution:

https://ttlc.intuit.com/replies/4787864

 

 

Opus 17
Level 15

HSA Contributions Form 8889 confusion - double deduction?

Employer contributions are listed on line 9, and limit the deductibility of contributions you make separately which are listed on line 1.  You should not be entering employer/employee contributions separately when the program asks for "additional" or outside contributions.

 

Under the tax code, any payroll contributions are considered "employer" contributions because you enter into an agreement with your employer to reduce your salary and your employer makes the contribution. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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