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Level 3

Solved

HSA

Forum|Forum|6 years ago
April 22, 2020
1 reply
26 views

I live in NJ and work in NY.

Can I take an HSA deduction in NY and a medical deduction in NJ for expenses I paid for through my HSA?

Not A Product Question

Best answer by VictoriaD75

Expenses paid through an HSA are never deductible, if have already received the tax benefit of the HSA contribution. The HSA contribution will show in box 12 of your W-2 with code W. This will then populate to your state return. These contributions are reducing the income reported in box 1 of your W-2, thereby reducing your taxable income for the state, if it is allowed in your state.

The contributions will be reducing your NY income, as it was NY-sourced income. Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return.

VictoriaD75Answer

Level 12

Expenses paid through an HSA are never deductible, if have already received the tax benefit of the HSA contribution. The HSA contribution will show in box 12 of your W-2 with code W. This will then populate to your state return. These contributions are reducing the income reported in box 1 of your W-2, thereby reducing your taxable income for the state, if it is allowed in your state.

The contributions will be reducing your NY income, as it was NY-sourced income. Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return.

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