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eddiecohoon
New Member

With state tax for HSA. I did not have an HSA at the end of 2010. So that value should be 0. But when I enter 2017 med dist says my 2017 cannot be higher than 2010

 
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BMcCalpin
Level 13

With state tax for HSA. I did not have an HSA at the end of 2010. So that value should be 0. But when I enter 2017 med dist says my 2017 cannot be higher than 2010

If you made contributions to an HSA prior to 2011, Wisconsin did not permit the deduction of such contributions. However, subsequent to 2010, Wisconsin passed a law that enabled you to make adjustments to your current income in order to simulate taking the HSA contributions prior to 2010.

NOTE: this applies ONLY if you were in Wisconsin prior to 2011, filing a state return, and contributing to an HSA at the federal level. If not, leave the section blank and continue.

See the screenshot below. The first line asks you for the value of your HSA in 2010, less distributions made in 2011, 2012, 2013, and 2014.

The second line asks for your HSA distributions in 2017. Note that this is all expenses (even perhaps for non-medical ones).

The third line asks for which of the 2017 distributions were for qualified medical expenses...BUT you are expected to enter no large than the amount in the first line - that is, it is really asking for "what part of the remaining pre-2011 HSA value did you distribute in 2017 for qualified medical expenses?" Viewed this way, because you are charging off some of the 2017 distributions against it the remaining pre-2011 HSA value, it's clear that you can't use more then the remaining pre-2011 HSA amount in 2017 for this purpose. 

Just limit the third entry to be no larger than the first entry, and the return will be correct.

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3 Replies
BMcCalpin
Level 13

With state tax for HSA. I did not have an HSA at the end of 2010. So that value should be 0. But when I enter 2017 med dist says my 2017 cannot be higher than 2010

which state?
eddiecohoon
New Member

With state tax for HSA. I did not have an HSA at the end of 2010. So that value should be 0. But when I enter 2017 med dist says my 2017 cannot be higher than 2010

Wisconsin
BMcCalpin
Level 13

With state tax for HSA. I did not have an HSA at the end of 2010. So that value should be 0. But when I enter 2017 med dist says my 2017 cannot be higher than 2010

If you made contributions to an HSA prior to 2011, Wisconsin did not permit the deduction of such contributions. However, subsequent to 2010, Wisconsin passed a law that enabled you to make adjustments to your current income in order to simulate taking the HSA contributions prior to 2010.

NOTE: this applies ONLY if you were in Wisconsin prior to 2011, filing a state return, and contributing to an HSA at the federal level. If not, leave the section blank and continue.

See the screenshot below. The first line asks you for the value of your HSA in 2010, less distributions made in 2011, 2012, 2013, and 2014.

The second line asks for your HSA distributions in 2017. Note that this is all expenses (even perhaps for non-medical ones).

The third line asks for which of the 2017 distributions were for qualified medical expenses...BUT you are expected to enter no large than the amount in the first line - that is, it is really asking for "what part of the remaining pre-2011 HSA value did you distribute in 2017 for qualified medical expenses?" Viewed this way, because you are charging off some of the 2017 distributions against it the remaining pre-2011 HSA value, it's clear that you can't use more then the remaining pre-2011 HSA amount in 2017 for this purpose. 

Just limit the third entry to be no larger than the first entry, and the return will be correct.

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