HSA - Form 8889-T

[GodFather]

Can someone please confirm my understanding of HSA's and form 8889-T.  Client has W2 with Box 12 containing a Code W with and amount of $2,550.  Client indicates they contribute $1,950 and the employer contributes $600....$2,550 in total.  

The HSA is for the client only as she is single.  I am checking the Self-only box Line 3 Smart Worksheet for every month and the system populates the rest.

ProSeries is populating Line 9A with the $2,550.  I believe this is correct and there are no other entries (besides entering any distributions from the plan) required.  Line 9 then says "Employer contributions made to your HSAs for 2022".  Those contributions not only represent the employer's $600 contribution but also the employees pre-tax contribution of $1,950, correct? 

$1,950 should not be placed on Line 2.  correct?      

Thank you. 

[IRonMaN · Accepted solution]

You are creating too much work for yourself.  Complete the W-2 showing the code W.  Then bounce over to the 8889 and check the box for self on line 1 and do it again for line 3A and the form will take the info and run.

[rbynaker]

Client may have a tax-saving opportunity to make an additional 2022 HSA contribution before the tax deadline.  I usually point out the triple-tax-free feature of HSAs and convince folks to put the extra in before the deadline.  I do make sure they designate it for the right year (usually a screen capture of the online transfer has all of the relevant data).

[GodFather]

Thank you both.  

If they did make an additional contribution (outside the W2) it would be placed on Line 2, is that correct?

[rbynaker]

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@GodFather wrote:

Thank you both.  

If they did make an additional contribution (outside the W2) it would be placed on Line 2, is that correct?

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Yes.  And then the limit is calculated below that.  If you have a partial year (i.e. HDHP coverage started mid-year) do check the specific months at the top but then the client can avail themselves of the "last month rule" as long as their coverage extends the required number of months into 2023.