Line 25 of the 1040 - HSA Deduction

[ETax847]

Has anyone ever prepared a return with an amount filled in on line 25 of the Federal 1040? I am just wondering in what situations it is used.

[Lion EA]

That's the line for a deductible HSA contribution, one made directly by the taxpayer from after-tax money directly to the plan holder, not via payroll deduction. For instance, now that my husband is retired but still has his HDHP, he writes checks from our checking account to contribute to his HSA.

[mcb39]

Has anyone ever prepared a return with an amount filled in on line 25 of the Federal 1040? I am just wondering in what situations it is used.

Yes, because many clients, because you have to have high deductible insurance to participate in an HSA; do contribute extra amounts to the interest bearing accounts up to the maximum allowed. You have to find out if your client did; and how much.