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What is cafeteria plan for 8889 form?

This is probably a dumb question.  So, I have X-dollars I had my employer withhold from my paycheck in pre-tax dollars towards my HSA account.  Nowhere in this process were the words "cafeteria plan."

 

So, when I fill out form 8889 line 2, I think I'm understanding "cafeteria plan" is probably not the best term used here.  I think what is being asked is to include all non-prex tax dollar on this line, ie taxed HSA contributions.

 

If that is the case then my X-dollars of pre-tax should NOT go on this line.  Only post-tax contributions I have made towards my HSA account should be on this line.  And since I didn't make taxed dollar contributions, I would put zero.

 

Is my understanding correct or did I miss something?

 

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Expert Alumni

What is cafeteria plan for 8889 form?

Line 2 on the 8889 has any money you contributed to your HSA with after-tax dollars, no pre-tax dollars.

 

Line 9 has the total of what your employer and you through payroll deduction contribution to your HSA (generally this is the amount with Code W in box 12 on your W-2).

 

"The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution. " I don't understand what you mean by this. Are you saying that the employer gave you after-tax dollars to put in your HSA? If so, that would go on line 2, but this is an unusual arrangement. This means that this "free money" was included in Wages in Boxes 1, 3, and 5 on your W-2 and is not in the code W amount in box 12. 

 

"employer matching is not suppose to be in that amount."

 

If the employer matching is included in the code W amount and is NOT removed from Wages in boxes 1, 3, and 5, this this would be true...but this is really unusual.

 

Unfortunately, you can't tell from looking at the W-2 if the "free money" was included in your wages - you have to ask your HR department to be sure.

 

If the "free money" is NOT in your wages on the W-2, then it should have been included in the code W amount. In this case, you would have to ask for a corrected W-2.

 

Note that code W amount often does not match the 5498-SA because of excess contributions returned, contributions made in subsequent years, and so on.

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Employee Tax Expert

What is cafeteria plan for 8889 form?

Yes, you are absolutely correct. Contributions made with pre-tax money (i.e. cafeteria plan, hsa) should not be included on Line 2 of your Form 8889.

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Level 1

What is cafeteria plan for 8889 form?

On this same topic, my W2 in box 12 has less than 5498-SA.  The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution.  I even asked if the number is wrong on box 12 for W section and they said its correct and employer matching is not suppose to be in that amount.

 

So, would the employer matching also be added to line 9 even though instructions say only put box 12 W from W2?  Because I definitely wouldn't put employer matching on line 2 since that's for post-tax dollars.

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Expert Alumni

What is cafeteria plan for 8889 form?

Line 2 on the 8889 has any money you contributed to your HSA with after-tax dollars, no pre-tax dollars.

 

Line 9 has the total of what your employer and you through payroll deduction contribution to your HSA (generally this is the amount with Code W in box 12 on your W-2).

 

"The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution. " I don't understand what you mean by this. Are you saying that the employer gave you after-tax dollars to put in your HSA? If so, that would go on line 2, but this is an unusual arrangement. This means that this "free money" was included in Wages in Boxes 1, 3, and 5 on your W-2 and is not in the code W amount in box 12. 

 

"employer matching is not suppose to be in that amount."

 

If the employer matching is included in the code W amount and is NOT removed from Wages in boxes 1, 3, and 5, this this would be true...but this is really unusual.

 

Unfortunately, you can't tell from looking at the W-2 if the "free money" was included in your wages - you have to ask your HR department to be sure.

 

If the "free money" is NOT in your wages on the W-2, then it should have been included in the code W amount. In this case, you would have to ask for a corrected W-2.

 

Note that code W amount often does not match the 5498-SA because of excess contributions returned, contributions made in subsequent years, and so on.

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Level 1

What is cafeteria plan for 8889 form?

"The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution. " I don't understand what you mean by this. Are you saying that the employer gave you after-tax dollars to put in your HSA? If so, that would go on line 2, but this is an unusual arrangement. This means that this "free money" was included in Wages in Boxes 1, 3, and 5 on your W-2 and is not in the code W amount in box 12. 

 

No.  They didn't include the amount in my gross for the paychecks where matching occurred.  To be honest, when I said "free money", I meant "match contribution" up to $500 with my company.  That amount is missing from box 12W.  They insist that matching is not suppose to be part of that number but previous employers I've had included it.  And since it's not part of my gross for the paycheck, I'm confused.  So, that's the reason for this question to begin with.

 

Your explanation is exactly how I understand it.  So, it's not me then.

 

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Expert Alumni

What is cafeteria plan for 8889 form?

So, they gave you $500 in your paycheck but did not report it as Wages on your W-2 and at the same time, did not report it in the Code W entry.

 

OK, let's do this...

 

Open your return in TurboTax

  • Do a Search for hsa 
  • Click on the jump-to result
  • Proceed through the HSA interview
  • Stop on the screen with the heading "Did your employer tell you about any other contributions?"
  • Despite the comment about "previous year", answer "yes"
  • Three new lines appear; the third one is "Employer and payroll contributions not reported in Box 12 of your W-2" 
  • Enter the "free money" here

Now, at least, TurboTax will be able to accurate see the amount of your HSA contributions.

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New Member

What is cafeteria plan for 8889 form?

Using the free file Turbo Tax, I cannot find any place where I would enter my portion of after tax HSA contributions, which constitute nearly half the amount reported by my employer in Box 12c Code W.  

The free file TurboTax software apparently doesn't offer any way to distinguish between my tax deductible portion and the employer contributions.  

How do I force this software to make that distinction so I can take advantage of this adjustment to income?

 

Thanks!

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Expert Alumni

What is cafeteria plan for 8889 form?

You can add contributions to your Health Savings Account by following these instructions:

  1. While signed in and working in TurboTax Online 2019, click on Federal in the black menu on left.
  2. Click on Deduction and Credits in the upper portion of the page.
  3. Scroll down and click on Medical, Show More.
  4. Choose HSA, MSA Contributions by clicking Start or Revisit

Click Edit to go through the 1099SA entry questions again. You will eventually come to a screen that says Let's enter XXXXX HSA contributions. It should have your contributions that came in off your W2 and a box to enter contributions you paid yourself. 

 

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