I have self-employed income under a K-1. I contributed to my HSA with my self-employed income. Where can I can edit my K-1 to enter self-employed HSA contributions?

[gcb117]

I have self-employed income reported on K-1 from January to November.  I made health insurance premium payments and contributions to my HSA from that self-employed income.  I took a new job in November with salary that will be on a W-2.  Due to a waiting period I have made no health insurance or HSA contributions with the W-2 income.

I cannot find a way to enter my self-employed HSA contribution so that it provides a deduction for my self-employed income.  The K-1 portion of TurboTax has a spot for self-employed health insurance premiums, but not HSA contributions. Please advise.

[PaulaM · Accepted solution]

Contributions to an HSA by a self-employed individual are not deductible from your self-employed earnings. 

You would enter these contributions as 'contributions that you personally made'. They will flow to line 25 on the 1040 as a reduction to your gross income (the same effect as a pre-tax deduction).

https://www.thetaxadviser.com/issues/2017/jul/contributions-hsas.html

[Critter]

https://ttlc.intuit.com/replies/4557768

[gcb117]

Critter#2, I see that screen, but it shows "2017 employer and payroll contributions (Box 12 of your W-2)" this is at $0 and does not allow for editing because it is tied to W-2 input.  My HSA contribution was not from W-2 wages and my Box 12 is blank.  Then there is the option for "Any contributions you personally made (not through your employer)."  This still is not helpful because yes, I made the contribution, but as my own employer.  Putting in the contribution amount here fails to provide me the pre-tax savings or deduction, presumably because it is being treated as a post-tax contribution.

[Critter]

Well ... either you made contributions  via the W-2 or not ... if you put the contributions in the non W-2 section then they are deducted on the form 1040 as an adjustment to income.   If you had made the contribution as your own employer then it would have been on the W-2 ... and if you are an employee of the S-corp then you should have done this thru the W-2 payroll system.

[Critter]

FICA Tax Implications

If you contribute to your HSA through a payroll deduction, the money is excluded from both income taxes and FICA taxes. For example, if you contribute $1,000 through payroll deductions, you won't have FICA taxes withheld on that $1,000 and your W-2 will show $1,000 less income.

In contrast, if you make a contribution on your own, your W-2 will show that $1,000 of income but you get to claim the contribution as an income tax deduction. However, it doesn't reduce the amount of FICA taxes you owe.

[gcb117]

Critter#2, thanks.  For some reason last night entering the amount as a contribution I made did not affect the bottom line on taxes owed.  Now, today, it does.  Not sure what was going on, but it is OK now.