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.
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.
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
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.