Form 5498 - SA (HSA account question)

Forum|Forum|5 years ago
February 18, 2021
3 replies
89 views

Hello All,

Can someone please help me clarify this question?

On Form 5498-SA Box 2 - Total contributions made in 2020

Is the amount in Box 2 Employee contribution? And if so, do I need to enter this amount manually on Form 8889 Line 2 (HSA contribution made by employee) even if the contributions are made through payroll deductions?

What I don't understand is if the employee contributed to his HSA through payroll deductions, which is pre-tax, why would this contribution show up on Form 5498-SA and I would still need to enter it on Form 8889 in order to have it deducted from taxable income? Isn't this making this amount pre-tax twice?

Thank you !!!

Sui

ProSeries Basic

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

You shouldn't really need to enter anything into the 8889 unless you made contributions outside of payroll.

You do however need to mark the Self or Family box in that Line 3 Smart Worksheet at the top of the form or you end up going own a rabbit hole with errors trying to make that form happy.

S

swongtaxAuthor

Level 5

Trying to answer my own question here:

I remember from some reading somewhere that Form 5498-SA Box 2 is a combined amount contributed by both the Employer and Employee through Payroll deductions and this amount is already pre-tax and does not need to be entered in Form 8889 Line 2.

I also believe that it is only when Employees made contributions from outside of payrolls then the amount is needed to be entered on Form 8889 Line, in order to deduct it from taxable income.

Can someone confirm that this is correct?

Thank you !

Sui

Just-Lisa-Now-

Answer

Intuit Community Champion

You shouldn't really need to enter anything into the 8889 unless you made contributions outside of payroll.

You do however need to mark the Self or Family box in that Line 3 Smart Worksheet at the top of the form or you end up going own a rabbit hole with errors trying to make that form happy.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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