HSA on tax return

[jIM_Ohio]

Is anyone here reporting HSA contributions on a 1040 long form?

I am in middle of preparing my return and have a question regarding employer HSA contributions vs Employee HSA contributions.

How are they reported to IRS?
How are they reported on tax return?

thx

[poundwise]

You need Form 8889 (Instructions).

Your HSA deduction will transfer from Form 8889 to Form 1040, line 25.

There is more to do if you have any non-qualified distributions and/or if you exceeded the contribution limit. This is explained on the form and by the instructions.

[jIM_Ohio]

Line 2- how are employer contributions reported?

That is my question. I have nothing suggesting what my employer contributed. I know they did, but nothing to document.

[poundwise]

Line 2- how are employer contributions reported?

Employer contributions are not included on line 2. Employer contributions go on line 9.

I have nothing suggesting what my employer contributed. I know they did, but nothing to document.

Your employer should report their contribution in Box 12 of your W-2, with Code W. If they did not, you should seek a corrected W-2 with that information provided.

[jIM_Ohio]

Employer contributions are not included on line 2. Employer contributions go on line 9.




Your employer should report their contribution in Box 12 of your W-2, with Code W. If they did not, you should seek a corrected W-2 with that information provided.

this is what I thought (employer needs to show something on w-2), but my w-2 shows nothing.

[Caoineag]

The other possibility is your HSA will send you a form. I received mine from my HSA already. I will have to go home though to see what form number it is.

[jIM_Ohio]

The other possibility is your HSA will send you a form. I received mine from my HSA already. I will have to go home though to see what form number it is.

I have two forms (HS contributions and HSA distributions). Neither breaks down what I contributed vs employer contributions.

[poundwise]

The other possibility is your HSA will send you a form. I received mine from my HSA already. I will have to go home though to see what form number it is.

Your HSA custodian will send a 1099-SA, which details distributions. It does not provide any contribution information.

The custodian may opt to send you some other information regarding the account (as yours may have and apparently Jim's has) however, that is more or less for your information only. Also, such information would typically be as of the end of the calendar year, whereas contributions for the tax year may be made up to April 15th.

[poundwise]

I have two forms (HS contributions and HSA distributions). Neither breaks down what I contributed vs employer contributions.

The bottom-line is that your employer is supposed to report employer HSA contributions on your W-2, Box 12. (This includes amounts you elected to contribute using a cafeteria plan.)

Hopefully they simply left this off and can correct it and did not erroneously lump that figure in with your wages, tips, and other (taxable) compensation in Box 1, which is a sometimes reported problem and one that definitely needs attention.

Ultimately, you should have records (statements) from your bank or HSA custodian as to what contributions were made into your HSA. Then, knowing what you contributed personally makes figuring out what they contributed a matter of simple math.

When you complete Form 8889 you have to report your contributions, employer contributions, and distributions. The information for your contributions comes from your own records. The information for employer contributions is supposed to come your W-2 but, if not, you are still responsible for reporting the proper figure. If your company won't give you a corrected W-2, you should contact the IRS and file a complaint. Lastly, the information on distributions comes from Form 1099-SA, which your account custodian should provide.

[jIM_Ohio]

Poundwise-

good reply. HSA contributions are thru april? did not know that.

I have the 1099 SA, and one other form showing contributions. No where is my employer contribution listed.

I think I know what it is... but this plan keep surprising me... so I want good documentation.

[poundwise]

HSA contributions are thru april? did not know that.

Yes. For instance, contributions for 2008 may be made until April 15, 2009. Contributions made from January 1, 2009 until April 15th must be classified as prior-year contributions. Different institutions handle the designation process differently.

It should be noted that your total HSA contributions, from yourself and your employer, cannot exceed the contribution limit, no matter at what point in the period those contributions are made.

For 2008, the contribution limits for HSA accounts are $2,900 with self-only coverage under a HDHP and $5,800 for an individual with family coverage.

(Note: There is a provision for those 55 and older whereby additional catch-up contributions are permitted.)


Edited to correct error in information

[Caoineag]

On my tax form, it claimed the limit was $2900 for 2008. As in form 8889 says that if you are under 55, its $2,900 ($5,800 for family). Not that it matters to me, I didn't get anywhere close.


Edited by poundwise: This information is correct. I have edited my previous post to reflect the correction. Thanks Caoineag.

[jIM_Ohio]

There was a W-2 reporting error. Got the e-mail from HR already.

I know the 2009 max for family is about 7k because that is what I am directing to my HSA this year for the family.

[poundwise]

There was a W-2 reporting error. Got the e-mail from HR already.

I'm glad to see that this is being corrected for you.

I know the 2009 max for family is about 7k because that is what I am directing to my HSA this year for the family.

That is incorrect. For family coverage, the maximum annual HSA contribution for 2009 is $5,950. SOURCE

[jIM_Ohio]

rounding error- 5900 rounds up to 6k, not 7k. OOPs.