Turbo Tax HSA question (Deluxe version)

[erictiger12]

I have $8000 HSA contribution from employer and payroll contribution (Box 12 of your W-2). After I checked I was covered by a Family plan every month of the year, my fed tax was changed from $128 due to $2272 refund, is this correct? Thanks!

[abner kravitz]

I don't know your situation but it sounds possible. That $8000 is subtracted from your income. You can't claim the deduction without claiming appropriate coverage, which for 8000 is a family plan.

[JustSomeGuy155]

I also have an HSA and used Turbo Tax Deluxe, and also had my federal taxes due turn to a refund after checking the same box

[MP123]

Yes, that seems right and implies that your effective tax rate is about 26.8%.

[erictiger12]

I thought Box 1 is already excluded the $8000 HSA contribution. Maybe Turbo tax default is I don't have HDHP in 2019. Once I checked Yes, the penalty is then removed?

[MP123]

I thought Box 1 is already excluded the $8000 HSA contribution. Maybe Turbo tax default is I don't have HDHP in 2019. Once I checked Yes, the penalty is then removed?

Yes, TT assumes you aren't eligible until you indicate that you are. At that point your HSA contribution becomes a deduction which lowers your income and thus lowers your taxes.

[MotoTrojan]

Are you old enough to use a catch-up? Otherwise the limit for a family plan is $7100.

If it came through payroll then you don't get to deduct it again.

[aristotelian]

Are you old enough to use a catch-up? Otherwise the limit for a family plan is $7100.

If it came through payroll then you don't get to deduct it again.

You don't deduct it twice but the way TT works is it doesn't give you the deduction until you do the health insurance interview to confirm your HDHP.