HSA Contributions

[bjf412]

For 2021, my employer contributed $1100 to my HSA and I contributed $6100. The entire $7200 appears on my W2 in Section 12. Shouldn't my $6100 contribution be excluded from federal taxes? If so, how do I reflect that in TurboTax? Thank you.

[DianeW777]

Entering your HSA is a two-step process in TurboTax, so you just have to keep going. 

HSA information is entered in 2 sections of TurboTax. First in Wages & Income as a W-2, 12 code W. But then you have to also enter it in the Deduction & Credits section under HSA, MSA Contributions too. So long as you meet all the requirements such as only using the HSA distributions for medical purposes and having a high-deductible health plan (HDHP) then your contributions on the W-2, box 12, Code W will not be taxed. 

Tax Tip:  If you took any distributions from your HSA then you will receive a 1099-SA.

[bjf412]

Thank you so much!

[JRB2024]

Hello, 

I want to make sure I properly account for 6k I moved from an IRA directly to my HSA.  My HSA gives me a 1099 with a gross distribution and in that is the 6k I moved over.  How to I ensure that I don't get taxed or penalized on the 6k I moved from the IRA to the HSA? Any thoughts or suggestions are helpful.  Thanks

Josh 

[AbrahamT]

Just to clarify, are you trying to enter this information in Turbotax, then

1- Click on the search bar on the right and type in 1099-R

2- Then click on the blue Jump to 1099R

3- On the 1st input screen, indicate that this is a normal distribution and check off that this is an IRA account.

2- A couple of screens down, it will ask you if this IRA is subject to an early withdrawal penalty, you will say "No"

3-Two screens down, it will ask you "What you Did You Do With The Money," you will say I did something else with it.

4- Finally, in the following screen it will ask you the details of the amount of the transfer to the HSA. Enter all the information in.

7-In forms mode, it will indicate how much of that money went into the HSA in the insurance section, see

And will be clearly identified on pg. 1 of the 1040 as such, HFD which stands for Qualified funding distribution.

[dmertz]

[Deleted]