Did I fill my form 8889 HSA tax contribution incorrectly?

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Topic Author
haranoth
Posts: 61
Joined: Wed Apr 06, 2016 12:07 pm

Did I fill my form 8889 HSA tax contribution incorrectly?

Post by haranoth » Thu Jan 10, 2019 9:06 pm

Hi all,
it seems I *might* have filed my federal return for 2017 wrong, but I wanted to be sure before proceding with an amendment.

specifically the form 8889 HSA contribution.

From what I understand from my employer , they provide a contribution of $500, if me as an employee sign up for HSA and decide to contribute.
As such, in 2017 the employer contributed $500 and , I ended up contributing $2000.

The W-2 form on Box 12C W lists $2500 however. So this includes both employer and employee contribution according to
https://ttlc.intuit.com/questions/18994 ... y-w-2-mean
W: Company contributions (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA)

(Although I am not sure what it means by "through cafeteria plan"?)

In 2017 I had first chance to contribute to HSA and since I did not have any experience , I followed the advice from the following website:
https://www.hsaedge.com/2014/03/18/how- ... orm-8889/ which ends up linking to
https://youtu.be/4YytquXsm5w

I have attached my Form 8889 that was submitted in 2018 for 2017 tax purpose.

Image

I am guessing
Line 2 should be 2000
Line 9 should be 500

However, the aforementioned website/youtube video lists that line 9 should match exactly W2 form box 12C W? If I follow that advice , it would be 2500, in which case, line 2 should be 0? That’s what I did for my 2017 tax form.

So, which is it?
1. Is my W2 wrong and I filled my tax incorrectly? or,
2. did I just misunderstand what the instructions were and filled my tax incorrectly?
3. Or did i file my tax correctly?

Thanks for your advice.

Spirit Rider
Posts: 10989
Joined: Fri Mar 02, 2007 2:39 pm

Re: Did I fill my form 8889 HSA tax contribution incorrectly?

Post by Spirit Rider » Thu Jan 10, 2019 9:44 pm

haranoth wrote:
Thu Jan 10, 2019 9:06 pm
(Although I am not sure what it means by "through cafeteria plan"?)
A "cafeteria plan" is another name for a Section 125 Health and Welfare plan that allows pre-tax payments and contributions.
I am guessing
Line 2 should be 2000
Line 9 should be 500
Nope; 0 and $2500. You HSA contributions are actually salary reductions that are then made as employer contributions. $500 in employer contributions + $2000 salary reduction/employer contribution = $2500 employer contribution. This is what allows the HSA contributions to be pre-income/FICA taxes. You never received that pay.
However, the aforementioned website/youtube video lists that line 9 should match exactly W2 form box 12C W? If I follow that advice , it would be 2500, in which case, line 2 should be 0? That’s what I did for my 2017 tax form.

So, which is it?
1. Is my W2 wrong and I filled my tax incorrectly? or, W-2 is correct.
2. did I just misunderstand what the instructions were and filled my tax incorrectly? You understood correctly.
3. Or did i file my tax correctly? Yes

Topic Author
haranoth
Posts: 61
Joined: Wed Apr 06, 2016 12:07 pm

Re: Did I fill my form 8889 HSA tax contribution incorrectly?

Post by haranoth » Fri Jan 11, 2019 10:21 am

Spirit Rider wrote:
Thu Jan 10, 2019 9:44 pm
haranoth wrote:
Thu Jan 10, 2019 9:06 pm
(Although I am not sure what it means by "through cafeteria plan"?)
A "cafeteria plan" is another name for a Section 125 Health and Welfare plan that allows pre-tax payments and contributions.
I am guessing
Line 2 should be 2000
Line 9 should be 500
Nope; 0 and $2500. You HSA contributions are actually salary reductions that are then made as employer contributions. $500 in employer contributions + $2000 salary reduction/employer contribution = $2500 employer contribution. This is what allows the HSA contributions to be pre-income/FICA taxes. You never received that pay.
However, the aforementioned website/youtube video lists that line 9 should match exactly W2 form box 12C W? If I follow that advice , it would be 2500, in which case, line 2 should be 0? That’s what I did for my 2017 tax form.

So, which is it?
1. Is my W2 wrong and I filled my tax incorrectly? or, W-2 is correct.
2. did I just misunderstand what the instructions were and filled my tax incorrectly? You understood correctly.
3. Or did i file my tax correctly? Yes
This is why , I love bogleheads and the people in it. Thank you so much for your "to the point and superb" reply. Highly appreciate it

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