I've already entered business income (from my rentals and my wife's consulting) and am now entering my W2 information in the Personal section. When I enter the information for box "W - Employer contributions to Health Savings Account" from my employer provided W2 ($2,139.65), it's causing my Federal Refund to go down. Why is this happening? I have a high deductible health care plan, and my understanding is that contributions to my HSA (which I technically made, not my employer, even though the box is labeled as such), are pre-tax and not taxable. Shouldn't my Federal Refund go UP, not down?
It sounds like the Health Savings Account section needs to be revisited. Perhaps qualifying medical expenses were not entered. To return to this section, follow these steps:
See the articles below for how to enter these details in your program:
Kathryn - thank you. It looks like it removes the HSA contribution from taxable income (my Federal Refund goes back up) once I go through the HSA section.