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janice-wilkerson
New Member

I contributed monthly to my hsa fund, not just the last month. Why is it showing my company did this and not me?

 
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BMcCalpin
Level 13

I contributed monthly to my hsa fund, not just the last month. Why is it showing my company did this and not me?

This is IRS terminology, which TurboTax has to follow.


The IRS calls the sum of the employer contributions and your contributions through a payroll deduction plan to be "employer contributions".

It's counter-intuitive, but the reason is because this sum (which is reported in box 12 with a code "W" on your W-2) is treated the same way - both amounts are pre-tax, and the employer places both amounts into the HSA. Another way to look at it is that you and your employer negotiated a payroll deduction plan, so that the employer paid part of your salary to the HSA in return for you not having to pay tax on it.

This is as opposed to amounts that you might contribute to your HSA independent of your employer (which is possible).

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1 Reply
BMcCalpin
Level 13

I contributed monthly to my hsa fund, not just the last month. Why is it showing my company did this and not me?

This is IRS terminology, which TurboTax has to follow.


The IRS calls the sum of the employer contributions and your contributions through a payroll deduction plan to be "employer contributions".

It's counter-intuitive, but the reason is because this sum (which is reported in box 12 with a code "W" on your W-2) is treated the same way - both amounts are pre-tax, and the employer places both amounts into the HSA. Another way to look at it is that you and your employer negotiated a payroll deduction plan, so that the employer paid part of your salary to the HSA in return for you not having to pay tax on it.

This is as opposed to amounts that you might contribute to your HSA independent of your employer (which is possible).

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