I have an HSA and contributed 4,600 (I am an older person) in 2021 through payroll deduction with my employer. This information appears in box 12 of my W-2 and was entered by Turbo Tax in the Deductions & Credits Section "Let's enter your HSA Contributions". However, this information is not being shown in the "Forms View. The "Forms view" for HSAs (Form 8889) Line 2 shows I contributed $0.00 to my HSA in 2021. I think this is because the directions for Line 2 say Do Not include employer contributions... However, in the Step-by-step view the "extra help" information for HSAs states "Contributions to your HSA can be made by your employer, you, or both. I tried entering the 4600 in the HSA area that says "contributions you personally made (not through your employer) to see if that would correct the problem. It did not. I also tried entering the 4600 for Line 2 on the Forms view. That did not correct the problem either. Both times I received a message saying I overfunded the HSA so I edited my response. I did not use any of the 4600 I contributed to the HSA in 2021. Line 13 on the Forms View shows that I have a $0.00 deduction and Turbo tax shows that I owe $4600 in federal tax because I have a $0.00 deduction for the HSA. I would appreciate any assistance you can provide so I can receive the deduction for the money I contributed to my HSA in 2021. Thank you.
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HSA contributions that are shown in box 12 of your W-2 with code W are considered employer contributions, even though the money came out of your pay. The contributions shown with code W have already been deducted from the wages in box 1 of your W-2, so you are not paying tax on them. You cannot deduct them again on your tax return.
Stick to the Step-by-Step interview for entering your HSA information. Don't make entries in forms mode. TurboTax is handling it correctly.
Thank you for the clarification.
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