Entering W2 Box W - Employer contributions to Health Savings Account is generating taxable income

[pmttx]

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?

[KathrynG3]

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:

• For Form 8889:
  • ​​​​​​​In the search box, enter HSA and select the Jump to link in the search results. 
  • Verify the amounts listed by running through the interview.
  • Select Done.

See the articles below for how to enter these details in your program:

What is a health savings account (HSA)?

Where do I enter my 1099-SA?

What is Form 8889?

[pmttx]

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.  

[KathrynG3]

You're welcome! We are happy to help any time!