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Returning Member
posted Feb 21, 2020 8:14:16 PM

Turbo Tax adjustment of FICA taxes as a result of an additional HSA payment outside your employer's plan?

How does Turbo Tax account for a reduction of Social Security taxes due to a payment to your HSA outside of the employer-sponsored plan?

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1 Best answer
Expert Alumni
Feb 22, 2020 11:48:41 AM

Contributing to your HSA outside of the employer sponsored plan does not reduce Social Security taxes.

 

However, your contribution outside of work will be reported on your return and reduce your income.

 

To enter this in TurboTax, follow these steps:

  • Click the magnifying glass in the upper right to open the Search Box
  • Type HSA
  • Click the Jump to Link
  • Answer the questions as asked
  • The screen following the question whether this HSA was inherited is: Let's enter your HSA contributions
  • Enter in any contributions you personal made, which means they were not made through your employer
  • Follow the rest of the questions until you can click Done

1 Replies
Expert Alumni
Feb 22, 2020 11:48:41 AM

Contributing to your HSA outside of the employer sponsored plan does not reduce Social Security taxes.

 

However, your contribution outside of work will be reported on your return and reduce your income.

 

To enter this in TurboTax, follow these steps:

  • Click the magnifying glass in the upper right to open the Search Box
  • Type HSA
  • Click the Jump to Link
  • Answer the questions as asked
  • The screen following the question whether this HSA was inherited is: Let's enter your HSA contributions
  • Enter in any contributions you personal made, which means they were not made through your employer
  • Follow the rest of the questions until you can click Done