Where do I input HSA on Scorp?

Forum|Forum|5 years ago
March 8, 2021
1 reply
11 views

Can you help with a Lacerte SCorp?
The owner made an HSA contribution which was included in the W2. Where do I indicate that this was made on the schedule K1? Health insurance comes out. Cant find HSA input.

Lacerte Tax

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qbteachmt

Level 15

Let me try restating this: "The owner made an HSA contribution which was included in the W2."

The Employer made a contribution to the Employee's HSA, which is already on the W2 and part of the payroll and benefits values for the corporation. It isn't part of the S Corp, now. And for the individual taxpayer, it's already on the W2. It doesn't go on the K-1; it's on the W2 for that employee.

This assumes they did this properly for an employee benefit provision.

(edited; oh, I see where I left a conflicting statement)

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rbynaker

Level 13

@qbteachmt wrote:

Let me try restating this: "The owner made an HSA contribution which was included in the W2."

The Employer made a contribution to the Employee's HSA, which is already on the W2 and part of the payroll and benefits values for the corporation. It isn't part of the S Corp, now. And for the individual taxpayer, it's already on the W2. They don't also get to deduct it, again, individually. It doesn't go on the K-1; it's on the W2 for that employee.

This assumes they did this properly for an employee benefit provision.

I don't know the answer, not sure I've seen this...but since employee benefits are added back for S Corp 2% shareholders it wouldn't be double dipping. I would think you'd have to figure out a manual override to get this to work out correctly. I'm not sure whether you would note this on the W-2 somewhere or the K-1 though.

Rick

qbteachmt

Level 15

My understanding is that it depends on if there is only the one person, or this is a true benefit and it was part of everyone's payroll.

I think we are stating it the same way: "but since employee benefits are added back for S Corp 2% shareholders it wouldn't be double dipping."

I found this: "The corporation's HSA contribution is a tax-free fringe benefit to the employee. ... You, the shareholder-employee, deduct on your individual IRS Form 1040 the HSA payments that your S corporation added to your W-2 income. You complete your Form 1040 just as if you had made the payments personally."

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