Im showing that my hsa is in box w12 and part of my reported w2 wages. Do i still need to fill out a 8889? The amount is only 108.

[BMcCalpin · Accepted solution]

The answer is “yes”, you need to file the 8889.

The simple answer is that the IRS requires you to file the 8889 if you make any contributions or withdrawals from the HSA. The $108 is (I assume) with a code “W” in box 12 on your W-2, right? That’s a contribution to your HSA.

But filing the 8889 is actually to your benefit. The reason is that the way the IRS and the 8889 work, that if you report an amount with a code “W” in box 12 and you don’t complete the 8889, then the code W amount is going to get added back to your income and you’ll be taxed on it. That’s because that code W amount is not in the wages reported on box 1 on your W-2, but without an 8889, it will have to be added back.

Anyway, you want to file the 8889 every year that you have activity in the HSA because it will save you money by recognizing that tax benefit that an HSA is.