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New Member
posted Jun 5, 2019 10:45:46 PM

What does deduction mean for HSA Summary?

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1 Best answer
Level 13
Jun 5, 2019 10:45:47 PM

"Deduction" on the HSA Summary screen refers to the amount of contributions that you made to your HSA outside of your employer (i.s., not through the payroll deduction scheme).

This amount will be deducted from your taxable income, appearing on line 12 of Schedule 1 (1040) (for 2019).

"Tax-free employer contributions" refers to the sum of the amount that your employer contributed to your HSA and what you contributed to the HSA through a payroll deduction scheme. This amount is normally the amount on your W-2 in box 12 with a code of "W".

This amount was never included in your wages so it does not appear on the 1040 (but does appear on form 8889).

"Deduction" and "Tax-free employer contributions" added together is normally the total amount contributed to your HSA during the year.

 

[Edited 3/24/2020 1:21 pm CDT - updated line reference for 2019]

6 Replies
Level 13
Jun 5, 2019 10:45:47 PM

"Deduction" on the HSA Summary screen refers to the amount of contributions that you made to your HSA outside of your employer (i.s., not through the payroll deduction scheme).

This amount will be deducted from your taxable income, appearing on line 12 of Schedule 1 (1040) (for 2019).

"Tax-free employer contributions" refers to the sum of the amount that your employer contributed to your HSA and what you contributed to the HSA through a payroll deduction scheme. This amount is normally the amount on your W-2 in box 12 with a code of "W".

This amount was never included in your wages so it does not appear on the 1040 (but does appear on form 8889).

"Deduction" and "Tax-free employer contributions" added together is normally the total amount contributed to your HSA during the year.

 

[Edited 3/24/2020 1:21 pm CDT - updated line reference for 2019]

Level 3
Jun 5, 2019 10:45:47 PM

Where is this Deduction value originating from? I don't see it on my W2 or 1099SA) I expected to see either $3450 (self) or $6900 (family) - HSA limits.  My deduction shows $1810 not where this is originating from.

New Member
Jan 25, 2020 7:12:45 PM

Mine keeps auto populating with $100, but I can't figure out where TT is getting that from.

Expert Alumni
Jan 27, 2020 7:52:44 AM

@maps4you - As I noted above:

Deduction" on the HSA Summary screen refers to the amount of contributions that you made to your HSA outside of your employer (i.s., not through the payroll deduction scheme)." So this amount would not appear on your W-2 because by definition, your employer is not aware of it.

 

Furthermore, the 1099-SA is only for reporting distributions from your HSA, not contributions to it.

 

The amount in the Deduction lime in the HSA Summary comes from two places primarily:

1. From your entry on the screen "Let's enter [name]'s HSA contributions" on the second line (contributions you "personally" made)

2. A carryover of an excess HSA contribution from the year before - no, this does not appear elsewhere (it would help if it printed on line 2 of the 8889, but it doesn't).

 

 

@seattlekristina

As I noted above, the amount in the Deduction line for the HSA Summary comes from either the amount you entered or from a carryover of excess HSA contributions.

New Member
Jan 27, 2020 9:43:21 PM

Thanks! I kept deleting it, but it never saved.  I had to enter 0 and then it took it away.  Must have been a typo when I originally completed that section.  Appreciate your help!

Expert Alumni
Jan 28, 2020 7:25:33 AM

You are most welcome.

 

Yes, normally if any input field does not apply to you, you should just skip it, but since it's possible to accidentally enter something in a field without meaning to, entering a zero may be the only way to persuade TurboTax that you "didn't mean it".