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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Can I use Form 8889-S for Caf125?

Resolved Question:

My W-2 Form line 14 - has CAF125 in the amount of $4,443.36 and TRS in the amount of $2,461.26. Can I use Form 8889-S (Health Saving Account) for CAF125? I know it's pre-tax but where on my 1040 do I put it?
Submitted: 9 years ago.
Category: Tax
Expert:  Merlo replied 9 years ago.
The codes that you just mentioned which are on your W-2 form are amounts that have already been paid to you on a pre-tax basis, meaning you are not allowed a deduction for these on your tax return.
The CAF125 is better known as a Cafeteria Plan, which means that amounts you paid for health coverage were not included in your taxable income. The TRS is for the Teachers Retirement System, and these amounts were also not included in your gross income, and therefore are not tax deductible.
If you made contributions to an HSA account on an after tax basis, then those amounts would be reported on Form 8889 and would then be carried forward to line 25 of your Form 1040 as a deduction. However, the codes you gave are not eligible for deductions since your employer is already treating these as pre-tax contributions by classifying them as a Cafeteria Plan.
I think if you will do some calculations on your taxable gross income reported in Box 1, you will see that the amount does not include the CAF125 or the TRS amounts.
Thank you.
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