Health Savings Account (HSA) tax question — Form 8889?
I have a few questions concerning Form 8889.
1. If I have my employer subtract $10.00 from each of my paychecks to invest in my HSA, can I deduct $260 on line 2 of this form? My employer’s contribution is $1000, and I listed this in line 9 of the form.
2. I received a 1099-SA, and there was an amount of $525 in box 1 of that form. I understand I need to put that amount in line 14a of the 8889 form, but can I also list the $525 in box 15 if I used 100% of this $525 for qualified medical expenses? Box 16 would then by zero, which I assume it should be since I used the entire amount for medical expenses.
Thank you so much. I have the rest of my tax forms ready, but this Form 8889 is really confusing me.
I stated the first part of my question a bit confusing. The $10 I contribute bi-weekly to my HSA is through payroll deduction (that’s the $260 amount I was going to put in line 2). Line 9 is directly from my employer ($1000). In this case, is the $260 from payroll deduction something I cannot list on line 2 since it is from payroll deduction?
Jane Boulette
1. The line 9 amount (W-2, box 12, code w) is already pre-tax so you don’t get to deduct it again.
You can only deduct money that you paid with after tax dollars. If the money went through the payroll system and isn’t in box 1 of your W-2, then you already got it pre-tax.
2. Distribution is exactly as you see it.