ljwalters Posted January 21, 2014 Report Share Posted January 21, 2014 Clients w-2 Line 12a has an amount for W HSA contributions The amount includes both employer and employee contributions. How do I separate it out on the 8889 so he can get his adjustment on the 1040. or does it matter Here's how it looks ln 2 1560 ln 3 6450 ... ln 9 3406 (employer 1846/employee 1560)... ln 13 1560 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 21, 2014 Report Share Posted January 21, 2014 Clients w-2 Line 12a has an amount for W HSA contributions The amount includes both employer and employee contributions. How do I separate it out on the 8889 so he can get his adjustment on the 1040. or does it matter Here's how it looks ln 2 1560 ln 3 6450 ... ln 9 3406 (employer 1846/employee 1560)... ln 13 1560 The amount shown on the W-2 does not need to be separated. The federal taxable wages have already been reduced by the employee's contributions, so your client is already receiving the tax benefit of those contributions. He does not receive an additional deduction on the 1040 page 1 unless he also made contributions directly to his HSA from personal funds outside of what he contributed through payroll deductions. In your example, the 8889 should be - line 2 should be blank unless taxpayer contributed after-tax dollars line 3 6450. line 9, enter full amount of 3406 from the W-2 line 13 , zero unless t/p also contributed after-tax dollars beyond what was contrib'd through payroll 1 Quote Link to comment Share on other sites More sharing options...
ljwalters Posted January 21, 2014 Author Report Share Posted January 21, 2014 Thanks jklcpa Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 21, 2014 Report Share Posted January 21, 2014 You are welcome. Quote Link to comment Share on other sites More sharing options...
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