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HSA question

Posted: Sun Feb 10, 2019 3:54 pm
by stocknoob4111
I'm using Turbotax Premier online and the part about the HSA is a bit confusing. I entered my W2 and per my calculations the number in Box 1 (wages, tips, other compensation) is my total income - 401k contributions - HSA contributions (the # is off my about $200 or so but close enough). However, Box 12b code W the HSA contribution is listed as $3,280.

In TT when I enter my HSA info it automatically imports $3,280 into the line for employer contributions (says enter 12b W from W2), and when I do it my Federal Tax Due drops by the taxes against that amount. However, Box 1 income already deducts the HSA so it does not even manifest as income in the first place. What am I missing here?

Btw, the HSA is a cafeteria plan and all contributions are payroll contributions, my employer does not technically contribute any funds. But as I understand it in a cafeteria plan my income is first reduced in exchange for employer contributions but if so is TT calculating tax liability including the HSA initially and then deducting it after I enter my employer contributions?

Re: HSA question

Posted: Sun Feb 10, 2019 4:32 pm
by cas
What does Form 8889 Line 13 say? Sounds like it should be $0. If it isn't, what is on Form 8889, Line 2. (Sounds like that should also be $0.)

Is the same number carried over to Line 25, Schedule 1? (Like the Form 8889 Line 13 instructions say it should be)

Re: HSA question

Posted: Sun Feb 10, 2019 4:55 pm
by stocknoob4111
unfortunately I cannot see individual forms in TT Online until I actually finish the return and pay for it. I'll keep an eye out for what you stated, thanks!

It does seem like TT is adding the HSA amount back into the overall income when coming up with the initial tax estimate and then removes it only when you complete the HSA section so that could explain it.