HSA Contribution through Employer - What Other Forms Should be Prompted?

Forum|Forum|3 years ago
March 5, 2023
2 replies
24 views

Taxpayer files jointly, and the spouse contributes to an HSA through her employer.

ProSeres is prompting entries on Form 8889 and 5329-S, which I would have thought this form is irrelevant since the HSA is being managed by the employer.

When entering HSA contributions on the W-2 (box 12, Code W), what other entries/forms are required / should be prompted?

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Just go to the 8889 and mark the Self or Family box in the smart worksheet BELOW the first entry line. No other entries are needed if all contributions happened through payroll

Just-Lisa-Now-

Answer

Intuit Community Champion

Just go to the 8889 and mark the Self or Family box in the smart worksheet BELOW the first entry line. No other entries are needed if all contributions happened through payroll

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

tccpg289Author

Level 5

Got it - but why does that action change taxable income? Is it not taking the deduction until that is checked?

My thought was the amount was NOT included anywhere on the W-2 (not taxable income), so the benefit is already recognized. The fact that there appears to be a tax benefit after clicking that Family box is a bit confusing.

Just-Lisa-Now-

Intuit Community Champion

The Code W in Box 12 is HSA contributions paid through payroll, if you notice Box 1of the W2 has already been reduced by this amount, so you got your "deduction" right there.

When you didnt have the box checked on the 8889, you had a penalty included, checking that box eliminates the penalty.

Go back and uncheck the box again, you'll see the 5329 light up in the Forms In Use list, thats were the penalty is computed.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

Try this article:

https://www.peoplekeep.com/blog/how-hsa-contribution-limits-work-for-spouses

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO