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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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Why is Turbo tax filling HSA amount as employer contribution

Resolved Question:

Why is Turbo tax filling HSA amount as employer contribution even though only 750 of the 6250 was contributed by the employer.

Why is 6250 not showing up in line 25 of 1040.

It's for married filing jointly.
Submitted: 3 years ago.
Category: Tax
Expert:  jgordosea replied 3 years ago.

Check the Form 8889 line 13 for the amount that goes to Form 1040 line 25.

On the 8889 line 13 is the lesser of line 2 or line 12.

Line 2 is the contributions she made not by the employer and not from a cafeteria or pretax plan.

Line 12 is the maximum allowable for the months covered by a plan.

Line 9 A has the amount from Box 12 code W of the W-2.
Note that may be both employee and employer when paid in from a salary deduction plan that is pretax such as a cafeteria plan.
If the box 12 of W-2 is the total then those salary reductions are treated like employer contributions.

Please ask if you need more discussion or clarification.
Thank you.

Customer: replied 3 years ago.
If I had received a salary where the employer did not offer a pre-tax contribution to HSA, and I had set up HSA through some kind of individual insurance plan, and then contributed to HSA, then that amount would not be in box 12 and I could claim in 8889-T.

Is the above correct understanding?
Expert:  jgordosea replied 3 years ago.
Hello again,

Yes, that is correct.
The amount that will flow to the 1040 to be taken off has to have been paid after tax, not via salary reduction plan.

If it was before tax and allowed as an adjustment that would be taking off something that was not ever into income.

Box 12 amounts on the W-2 are not included in Box 1 taxable wages.
Box 12 amounts can not be used for the adjustment.

Hope that clarifies for you.
Please do ask again if you need more help.

If you have other questions and want me to answer please put my name in the question so other experts will let me answer.

Thank you.

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