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avoiding taxation of HSA contributions

dolmana
Level 1

how do I avoid taxation of Code W on W2 amount.  I have completed 8889 but it's taxing the contribution.  Thank you in advance for the help.

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15 Comments 15
sjrcpa
Level 15

You have to indicate family or single coverage, months the HDHP was in effect, etc.. Either the form is filled out incorrectly or the employer overcontributed.  My guess is the former.

The more I know, the more I don't know.
The-Tax-Lady
Level 9

Did you put an X in the box on the 1099-SA form to indicate all distributions were use for medical expenses.

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dolmana
Level 1

all months are populated at $7000 with family coverage.  The employer did not over fund.

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dolmana
Level 1

Yes, I did that and it flowed properly.  Still being taxed

 

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Terry53029
Level 14
Level 14

On the 8889 line two, you didn't put an amount, as the amount is taken from the W2 

Just-Lisa-Now-
Level 15
Level 15

Be sure to check the Self or FAmily box in the Smart worksheet below Line 2...not just the box on Line 1 and dont enter anything on Line 2


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dolmana
Level 1

Did that. All lines are populating at $7000. Still taxing the contribution. 😞

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Just-Lisa-Now-
Level 15
Level 15

Then you've got something checked somewhere wrong, Delete that 8889 and start over, only check the Family box in the Smart Worksheet below Line 2


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dolmana
Level 1

that's correct. nothing on line 2.

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dolmana
Level 1

nope, no entry

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dkh
Level 15

Does line 9 of 8889 = W2 contributions?   is it less than line 5?

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dolmana
Level 1

yes it equal contributions and is less than line 5.

 

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dkh
Level 15

Same $ amount lines 3,5,6,8 ?  

dkh
Level 15

W2 and Form 8889 are both for taxpayer or spouse.  You don't have an "Ownership Designation Mismatch" by chance.     I'm just throwing out ideas, hoping something sticks. 

dkh
Level 15

@dolmana  -  don't leave us hanging ...… did you get your problem resolved?