HSA contribuations

Forum|Forum|6 years ago
March 17, 2020
2 replies
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BillM223

Level 15

Did you have a question about HSA contributions?

Please give us details, since we in the Community cannot see your tax return nor the screen you are on.

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sreiley

Level 2

My company reports their contribution and my contribution to my HSA on my W2 with code W. Unfortunately, the software seems to think that 100% of what is reported there is employer contribution on the tax form 8889-T. I had this problem for the last several years. I have to do an override to show that my employer only paid a portion of the number reported and then I get an error when the system goes thru and does the check. Something is messed up with the software and it does not allow you to change the amount that was actually the Employer Paid vs what I paid that is reported on my W-2. Please fix the software.

VictoriaD75

Level 12

It is common practice that employers enter both the employee payroll contribution and employer contributions with code W in box 12.

The most common error I see when entering HSA contributions are double reporting. Typically, these payroll contributions are reported on your W-2 in box 12 with code W. If that is the case, no other contribution needs to be reported in the software.

Under the Deductions & Credits menu, confirm the following:

Expand the menu for Medical
Click Start/Revisit next to HSA, MSA Contributions
Confirm the account ownership and click Continue
Continue in through the screens until you reach Let's enter your HSA contributions
Stop here. If all of your contributions were through payroll deductions and reported on your W2, do not enter anything on this screen. If that is the case, either leave the box empty or type $0 in the box next to Any contributions you personally made

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sreiley

Level 2

That does not help. That puts me right back where I was with it looking like all of the contribution was from my employer and not a penny was from me. I paid the majority of it and the employer only contributed $1000. There is no way to fix it in the software that I can see and basically gives me $0 credit for the money I invested in my HSA, even if it was done as part of a deduction on a paycheck by paycheck basis. That doesn't change the fact that it was me making the investment and not the employer. Our company will match $1000 for whatever we invest in our HSA every year. A nice benefit but not if your software is going to screw it up every year. The software has been messed up like this for years now and I have to keep going in and doing an override to clearly show that only $1000 was from the Employer and the rest was from me.

You guys need to find a way to have the input change triggered when the W-2 is entered. I am not going to loose my benefit and will have to do the over-ride to show what part was paid by the employer and what part was my contribution. Leaving it alone, it shows I did NOTHING and the employer basically paid me an additional bunch of money....which is not true.

Last year, your software actually triggered a potential finding at this point in the final review and allowed me to go in and make the change. That is not happening this year. Again, this should be caught at the time that we enter the W-2 and not way at the end of the run.