Employer contribution to HSA

Forum|Forum|6 years ago
February 24, 2020
2 replies
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Turbo Tax does not let me change the employer contribution to my HSA account. It shows the contribution for 2018 (2018 contribution was different from the 2019 contribution) and I can't change it.

Any advise?

My 1099 SA shows a larger amount then the amount on W2 Box 12 Code W. Does Turbo Tax know to assume the difference as employer contribution to HSA?

My Turbo Tax addition is Home & Business, not listed below.

TurboTax Business Windows

Best answer by BillM223

First, the 1099-SA has nothing to do with HSA contributions. The 1099-SA reports on how much you spent out of the HSA ("distributions"), presumably on qualified medical expenses.

Second, the screen with the title "Let's enter [name]'s HSA contributions" shows the "employer" contribution, but, as you have found, you cannot change it there. That is because it is the amount with code W in box 12 on your W-2. If you were to change it, you would change it on your W-2.

However, you would not change it on your W-2 unless you knew that the employer got it wrong, and then you would ask the employer for a corrected W-2.

Note that the "employer" contribution is the sum of what your employer contributed to your HSA PLUS what you contributed through payroll deduction. Please don't be confused that the payroll amount is a "personal" contribution - it's not, in the eyes of the IRS.

I do not know what to say about 2018 vs 2019 contributions since I can't see your W-2. Are you saying that the code W amount in box 12 on your W-2 is for 2018 and not 2019?

BillM223Answer

Level 15

First, the 1099-SA has nothing to do with HSA contributions. The 1099-SA reports on how much you spent out of the HSA ("distributions"), presumably on qualified medical expenses.

However, you would not change it on your W-2 unless you knew that the employer got it wrong, and then you would ask the employer for a corrected W-2.

I do not know what to say about 2018 vs 2019 contributions since I can't see your W-2. Are you saying that the code W amount in box 12 on your W-2 is for 2018 and not 2019?

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eli43turAuthor

Level 2

Thank you for answering my question.

Here are some numbers to clarify my question.

Employer contribution 2018: $700

Employer contribution 2020: $1000

2019 W2 box 12 code W: $6,999.76

1099 SA has no box numbers. Line 1 says: "gross Distribution...7,302.71"

In Turbo Tax, under "Let's enter...HSA contributions" for "2019 employer and payroll contributions" it shows $700. Nowhere I was asked to enter employer contributions or entered this number. I assumed it was copied from the 2018 return.

Why it is incorrect and how can I fix it?

Thank you much.

BillM223

Level 15

OK, let's ignore the 1099-SA. All it is saying is that you spent $7,302.71 on medical expenses (I hope they were all qualified medical expenses).

I am going to assume that you made a typo when you typed "it shows $700". Based on your code W entry on your W-2, it should have been $7,000.

Note that TurboTax rounds to the nearest dollar as soon as it get dollar amounts from you, so the "2019 W2 box 12 code W: $6,999.76" is actually $7,000.

This $7,000 is the total amount that your employer contributed to your HSA (if anything) PLUS whatever you contributed through payroll deduction (if anything).

When you entered your W-2, you entered your employer contribution (the amount in box 12 with a code of W).

Is it making more sense now?

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JoeW56

Level 2

A problem occurs if you enter the information from Form 1099-SA (HSAs), the second item under Less Common Income, before you enter the information from Box 12W on a W-2.

There may be similar issues with other miscellaneous income sections. They apparently designed Turbotax anticipating that users would enter the information from all W-2s before entering other information related to employment.