When
I entered my HSA contributions ($7,613.88) it made my tax owed go up by $2,589.
Since HSA contributions are pre-tax, that seems wrong. Why do I have to pay tax
on the HSA contributions?
None of the answers to your questions address this.
You'll need to sign in or create an account to connect with an expert.
"Why do I have to pay tax on the HSA contributions? "
You don't have to pay tax on your HSA contribution, and you won't pay taxes on your HSA contribution when you tell TurboTax that you're covered by a qualifying HDHP.
When you enter that information off your W-2 TurboTax doesn't know if you're covered or not. Pending an answer to that question it kicks the deduction over to "Other income" (line 21 of the Form 1040) and your tax goes up. Once you work through the HDHP/HSA questions over in the "Credits and Deductions" area TurboTax will reverse that entry and your taxes will go back down.
Tom Young
"Why do I have to pay tax on the HSA contributions? "
You don't have to pay tax on your HSA contribution, and you won't pay taxes on your HSA contribution when you tell TurboTax that you're covered by a qualifying HDHP.
When you enter that information off your W-2 TurboTax doesn't know if you're covered or not. Pending an answer to that question it kicks the deduction over to "Other income" (line 21 of the Form 1040) and your tax goes up. Once you work through the HDHP/HSA questions over in the "Credits and Deductions" area TurboTax will reverse that entry and your taxes will go back down.
Tom Young
Thanks Tom.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
TedCar
New Member
em451
New Member
Alex139
Level 1
ash69919
New Member
miyabi13
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.