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hcreel83
New Member

I am seeing articles online that say your HSA contributions should reduce your adjusted gross income. That doesn't show true on any of my returns, is there a catch?

Contributions are deductible even if you do not itemize your deductions.
2 Replies
AnnetteB6
Expert Alumni

I am seeing articles online that say your HSA contributions should reduce your adjusted gross income. That doesn't show true on any of my returns, is there a catch?

There is a bit of a catch.  Assuming you meet the qualifications to make a contribution to your Health Savings Account (HSA), for the contribution to be deductible, you must have made the contribution directly to the HSA with after-tax dollars.  

 

When contributions are made to your HSA through payroll deductions (reported on your W-2 in box 12 with code W), they are done with pre-tax dollars and therefore do not show on your tax return as a deductible contribution.  Instead, your taxable income in box 1 of your W-2 is lower than it would have been without the HSA contribution.

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hcreel83
New Member

I am seeing articles online that say your HSA contributions should reduce your adjusted gross income. That doesn't show true on any of my returns, is there a catch?

That clears it up, thank you so much!

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