My 2021 HSA Contributions Look Like Income?

FirstTimer2 · ‎January 30, 2023

I just started my taxes. I left one company with the HSA on 11/30 and began work with the new company on 12/1. I elected the HSA at the new company during December, which was retrospective to my first day of employment. My summary at the end of the income section indicates that my HSA contributions were considered income. What happened and how do I correct it please? Thank you for your time and attention.

HelenC12 · ‎January 30, 2023

Health Savings Account (HSA) contributions are considered taxable by the IRS until you complete Form 8889 to reflect that you had the proper High Deductible Health Plan (HDHP) coverage.

TurboTax completes Form 8889 for you as you go through the HSA interview section. To get to that section in TurboTax, search hsa and click on the "Jump to" feature.

Make sure you go all the way to the end of the HSA interview so TurboTax properly categorizes the contributions as not taxable.

Related information:

Where do I enter my HSA contribution?

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View solution in original post

HelenC12 · ‎January 30, 2023

Health Savings Account (HSA) contributions are considered taxable by the IRS until you complete Form 8889 to reflect that you had the proper High Deductible Health Plan (HDHP) coverage.

TurboTax completes Form 8889 for you as you go through the HSA interview section. To get to that section in TurboTax, search hsa and click on the "Jump to" feature.