I contribute to both a pre-tax and after tax HSA. I'd like to withdraw a portion of the after tax HSA for personal use. How do I report and how much am I penalized?

[Critter]

There is nothing wrong with that ... however you should have no box 12 code W entry on the W-2 ... in your case you will make the HSA contribution entry yourself ...

https://ttlc.intuit.com/questions/2766470-where-do-i-enter-my-hsa-contribution

[kwtansel]

Ah okay great. Thanks for your help!

[ghost]

@kwtansel  Because your employer has deposited your HSA money after-tax, you will be claiming the income tax savings on your tax forms when you file. However, you will not be able to save the Social Security and Medicare taxes paid on the HSA amount. Had your employer deposited the HSA money pretax, then you would have saved on those taxes as well.

[Crystalbell226]

If I funded my 2019 HSA after Jan 1 2020, how do I note this on my taxes in order to be refunded for the taxes that I already paid on my $3,000 contribution?  Do I just reduce my income on my W-2 by $3K?

@Opus 17 

[dmertz]

Since you mention already having paid taxes on this money, presumably it was a personal contribution.  If it was a personal contribution for 2019, you just enter it as such on the Let's enter your HSA contributions page.  You'll receive a deduction on Schedule 1 line 12 for this contribution.

However, if it was a contribution made through your employer by payroll deduction, answer Yes when asked if your employer told you about any other contributions, then enter the amount in the box for Employer and payroll contributions made in 2020 for tax year 2019.  Your employer will exclude this amount from box 1 of your 2020 Form W-2, so you will not be paying taxes on it.