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DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 789
Experience:  Years of Experience in Business & Personal Taxes
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An employer contributes 4,000 into an HSA for an employee and

Resolved Question:

An employer contributes 4,000 into an HSA for an employee and his dependent. The 4,000 is reported on line 12a of the employee's W-2. The employee makes no contribution into the HSA for the tax year. The employee also has distributions from the plan of 2,625. Is the 4,000 reported as other income on Form 1040, Line 21? Is there any deduction on line 25 of Form 1040?
Submitted: 5 years ago.
Category: Tax
Expert:  DanielleCPA replied 5 years ago.

DMC :

Hi and welcome to Just Answer! I'm happy to help with your tax questions. Feel free to interject at any time if you need clarification.

DMC :

Information reported in box 12 is generally for informational purposes only.

DMC :

Employer HSA contributions must be reported in Box 12 of the W2 under code "W." This is for informational purposes only.

DMC :

The $4,000 in contributions are not taxable income to you. See the discussion of HSAs in the W2 instructions. Look on page 5 on the right hand side - roughly middle of the page. Link is here: http://www.irs.gov/pub/irs-pdf/iw2w3.pdf

DMC :

There is no deduction on line 25 of the 1040 since the employer made the contribution for you on your behalf tax-free.

DMC :

Your distributions are not considered taxable income provided they were used for qualifying medical expenses.

DMC :

Please let me know if you need clarification or have any further questions.

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