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So in 2006 we got ourselves a new High deductible health plan and a nifty Health Savings Account at work. I maxed out my (supposedly pre-tax) contributions of $3k per year to the HSA to offset the $3k per year deductible. At least that's how they told me it was supposed to work out.

So now I just got my W-2 from the company and box 12a reports that my contributions to the HSA are listed with letter code W which TTax lists as "Employer Contributions to Health Savings Account". Excuse me, but I contributed to that account, not my employer.

Anyway, that contribution now shows up as income on Line 21, per Form 8889 - (I should add here that I imported the W-2 from "e-file" but have verified every box with the paper version). That shouldn't matter though, it's just a way to explain how Form 8889 got into my return without my permission. I don't yet see a way in the interview to discuss the topic of HSAs. Is it in there? Once I get through that topic, will the HSA contributions disappear from taxable income?

So, what gives? Did the employer screw up my W-2? Or was I sold a bill of goods on the whole HSA concept?
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I don't yet see a way in the interview to discuss the topic of HSAs. Is it in there? Once I get through that topic, will the HSA contributions disappear from taxable income?

If you're going to do a return in interview mode you have to get through the whole thing before anything, espectially that ridiculous "Watch your refund grow" number, means anything. It sounds like the only thing the software knows at this point is that there were HSA contributions.

Since you seem to know how to look at the forms in progress, take a look at the 8853 for a taste of things to come.

Phil
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Thanks for the heads up on where to look. Let me ask the simple question: At the end of the day, should those HSA deductions from my paycheck show up as taxable income or not? Knowing that, I can know what to look for.

Oh, and Phil, get some sleep man. You posted a reply at 2:57am, even adjusting for time zone probabilities, that's still close to 1am on the west coast (I have no clue where you are located). Still, you need to rest up, tax season is only just beginning!


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Thanks for the heads up on where to look. Let me ask the simple question: At the end of the day, should those HSA deductions from my paycheck show up as taxable income or not? Knowing that, I can know what to look for.

As long as you follow all the HSA rules, with which I'm not familiar, at the bottom line it shouldn't affect your tax return.

Oh, and Phil, get some sleep man. You posted a reply at 2:57am, even adjusting for time zone probabilities, that's still close to 1am on the west coast (I have no clue where you are located).

I'm in EST. One of the many joys of retirement is the freedom to sleep when you're tired. I'm often roaming around in the middle of the night, a joy of combined retirement and living alone. Drives me nuts when I have a houseguest since the computer is in the guest bedroom.

Just about naptime. I need to be perky this evening so I can take down the Christmas tree while keeping half an eye on that big curling championship everyone's talking about. A friend is coming over to make me Aunt Kathleen's incredible mac & cheese in belated celebration of my November birthday.

Life is good.

Phil
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Aunt Kathleen's incredible mac & cheese

And if you're calling it incredible, it must be absolutely divine! Would Aunt Kathleen be willing to share her recipe?

so I can take down the Christmas tree

Yeah, I need to do that too. But I'd rather be eating mac and cheese!

~~ Alison
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Oh, and Phil, get some sleep man. You posted a reply at 2:57am, even adjusting for time zone probabilities, that's still close to 1am on the west coast

You need to learn timezones ;). That would be almost midnight on the West Coast (I thought you might have been in Central Time to say that, but since I'm on EST and my computer says he posted at 2:57 AM too, guess not).
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You need to learn timezones

Yeah, I thought about that after I posted. I did wonder what that time stamp really referred to. Let's see, I posted at 8:41 this morning (CST) and the time stamp is 9:41, so the time stamp is EST. Therefore, Phil really is a night owl (and a wise one he is).
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Would Aunt Kathleen be willing to share her recipe?

It's his late Aunt Kathleen, not mine, but I'll see what I can do.

Phil
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It's his late Aunt Kathleen, not mine, but I'll see what I can do.

Ah, I see you're up from your nap.

Thanks, and enjoy your afternoon!

Oh, and thanks again for the Pub. 970 reference. That's exactly what I was looking for and will pass it on to the employed student.

~~ Alison
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Drives me nuts when I have a houseguest since the computer is in the guest bedroom.

So when Phil's not postin', he's hostin'.

Doug
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