Common questions about additional taxes on Schedule 2 in ProConnect Tax

This article will help you with frequently asked questions about Form 1040, Schedule 2 in .

Most lines of this form are calculated using other forms in the tax return. 

Why is the return calculating an additional HSA tax?

This usually occurs when your client’s W-2 reports HSA contributions, but you haven’t indicated their type of health plan coverage yet. To enter coverage:

1. Go to Input Return ⮕ Deductions ⮕ HSA/MSA/LTC Contracts (1099-SA, 5498-SA) ⮕ Health Savings Accounts (8889)
2. For Type of coverage: 1=self-only, 2=family enter a 1 or 2.

Why is an MSA tax calculating?

An additional tax on MSA contributions or distributions may generate if your entries on Medical Savings Accounts are incomplete.

1. Go to Input Return ⮕ Deductions ⮕ HSA/MSA/LTC Contracts (1099-SA, 5498-SA) ⮕ Medical Savings Accounts (8853)
2. Review the entries to ensure they are correct.

Where do I enter other taxes for line 17z?

1. Go to Input Return ⮕ Taxes ⮕ Schedule J, Recapture, Other Taxes.
2. Scroll down to the Other Taxes section.
3. Enter the amount and a description in Other taxes.