State not calculating right

Forum|Forum|7 years ago
June 6, 2019
1 reply
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Turbotax had us owing $2900 to our state and I knew the amount should be 0. I was able to go through the form and put in the right numbers but it bothers me that it wasn't calculating correctly and makes me wonder what else it isn't doing right.

It also didn't add in the amount of our HSA credit on our Federal form so I had to enter that manually as well.

TurboTax Deluxe Windows

Best answer by BillM223

I cannot address your state issue since I don't know which state you are referring to.

But your HSA situation is likely due to one of two reasons:

1. If you contributed to your HSA through a payroll deduction program, then your contributions are removed from Wages in boxes 1, 3, and 5 on your W-2. That's why the deduction for the HSA contributions doesn't show up on your return - because it was removed from Wages before they ever got on your return.

Note that these contributions are added to any employer contributions (IRS requirement) and called the "employer contribution". This is reported on form 8889 but not on the 1040.

The only HSA contributions that get reported on Schedule 1 (1040) are contributions that you made outside of your employer with after-tax dollars.

If you manually entered your contributions made by payroll deduction onto line 12 of Schedule 1 (1040), then you have made a mistake and over-deducted your contribution.

2. The second alternative is that you did not complete the HSA interview (i.e., go all the way through until you return to the Your Tax Breaks screen) - not finishing the HSA interview causes anomalous results.

[Edited 3/17/2020 5:16 pm CDT - updated to 2019]

BillM223Answer

Level 15

I cannot address your state issue since I don't know which state you are referring to.

But your HSA situation is likely due to one of two reasons:

Note that these contributions are added to any employer contributions (IRS requirement) and called the "employer contribution". This is reported on form 8889 but not on the 1040.

The only HSA contributions that get reported on Schedule 1 (1040) are contributions that you made outside of your employer with after-tax dollars.

If you manually entered your contributions made by payroll deduction onto line 12 of Schedule 1 (1040), then you have made a mistake and over-deducted your contribution.

[Edited 3/17/2020 5:16 pm CDT - updated to 2019]

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Bab-KAuthor

Level 2

Thank you. This is a big help. The HSA is confusing because it isn't the employer contributing since it is our money that is being deducted. It messes me up every year. I went all the way through the interview process but now I'm getting a message that says we have contributed too much this year so I understand that now. Missouri is the state not calculating correctly. We live in MO but all of our income comes from Illinois and it wasn't giving us credit for the taxes paid to Illinois. I will print out your answer and keep it with my taxes for next year. I will get it right one of these years!