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New Member
posted Feb 26, 2020 6:49:33 PM

On my W-2, when I enter box 12 letter W, my federal tax return goes down by about $1,300. Why am I being taxed on my HSA contribution when they should be tax free?

I have read several other similar questions and I'm still confused. I contributed the HSA family maximum in 2019 and my employer contributed 0. Once I put the W 7000 in for box 12, my tax return drops as if I'm being taxed on this. Why would I even want to contribute to an HSA account if I'm just going to get taxed on this money at the end of the year?

 

In reading this post- https://ttlc.intuit.com/community/tax-credits-deductions/discussion/this-has-been-confusing-me-for-years-why-is-the-money-that-i-not-my-employer-put-into-my-hsa-being/00/549369#M71020

It sounds like I need to try and get TurboTax to let me fill out a form 8889 somehow

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1 Replies
Expert Alumni
Feb 26, 2020 7:16:40 PM

In order to show that your HSA contribution and any distributions from your HSA are tax free, you have to complete Form 8889.  To complete Form 8889 in TurboTax Online, while logged in to your account and in your return:

  • Click on Search
  • Type in Form 8889
  • Click on "Jump to from 8889"
  • TurboTax will guide you through completing your HSA information for Form 8889
  •