HSA

[jesseth1]

On my W2 my HSA is listed. When doing my taxes TurboTax  it had me do the HSA credit. Mine is a high deductible so it says I qualify and I get more back. My HSA is deducted through my payroll so it is already pre-taxed so why would I get another credit? 

[dmertz]

You do not get another deduction for the HSA contribution.  Do not enter the HSA contribution as a personal contribution.  Enter amounts shown in box 12 of your W-2 only in box 2 of TurboTax's W-2 form, nowhere else in TurboTax.

[Mike9241]

@dmertz shouldn't that be box 12 code w in the Turbotax w-2. 

[jesseth1]

It is coded12W on my W2 but then in the income section of turbo tax it says I "need to visit" the HSA. It comes up and ask how much my employer put in, have is used any and then click the high deductible and it basically then credits the whole amount back to me

[BillM223]

"it had me do the HSA credit." First, there is no such thing as an HSA "credit". I assume that you are referring to the HSA interview, where you are asked a series of questions about your HSA.

Yes, some or all HSA contributions are listed in Box 12 on your W-2 with a code of W, but you have to go through the HSA interview in order to establish that you had HDHP coverage (the W-2 doesn't tell us that). In addition, TurboTax has to determine if you made excess HSA contributions, which, once again, the W-2 doesn't tell us.

"ask how much my employer put in" - where does it ask this? It asks you how much your "personal" contributions were, but as dmertz noted above, no part of the code W amount should be entered as a personal contribution.

"it basically then credits the whole amount back to me" What does "credit the whole amount" mean? You mean, it increases your refund by the code W amount? It can't. And surely you don't mean that you are getting a credit for this. As I said, there is no HSA credit.

So, please tell us,

1. your code W amount

2. the amount of "credit" you think you are getting.

[dmertz · Accepted solution]

TurboTax asks if the employer told the employee about any "other" amount contributed to the HSA, meaning either an amount not included in the code-W amount or an amount included in the code-W amount that was for the prior year.  Nothing was mentioned that indicates either of these situations apply, so the only dollar entry should be the code-W amount entered in box 12 of TurboTax's W-2 form, no dollar amount entered anywhere else with regard to contributions made through the employer.

[ztqsteve]

I entered 0 for "Any contributions you personally made". Contribution through payroll is $4150 which is the same as Box 12 W. Selected "No" to "Did your employer tell you about any other contributions". No Medicare, Yes to HDHP for every month of 2024, No overfund in 2023, then "Federal refund" increased. Is it normal?? The HSA contributions have already been deducted from my wage in W2 Box 1.

[dmertz]

TurboTax treats amounts shown with code W in box 12 of your W-2 as excess contributions subject to penalty until you complete the HSA section of TurboTax.  Once that's done to establish your eligibility for the contribution, TurboTax removes the penalty which increases your refund by the amount of penalty removed.