clarification - 8889 - Did I screw up?

[WITAXLADY]

I am having a mental crisis here -

Form 8889 -

I have not put the employee contributions on the line 2, page 2 - click over - but left it at the EmployER contribution..

from the W-2 - line

However, line 1 if you click over says to put contribution here...  if not from a cafeteria plan -

Isn't that what happened? Cafeteria plan - where the employee elects to have the HSA taken out pre-tax?

and when I click off the

employer - all the numbers go away..

but that is okay as it does not change the refund?/due?

 

And I do use the line 1 contribution when it is additional or self.

Just the W-2 W that is flowing through..

Tell me it's ok?

Or I have been doing it wrong since 2019!

 

Or just 2022!! as that does change the refund! But why? It is already included in pre-tax or not included??

Do not need to know until April 16th as 2020 was the May 17th amends!

Thx

D/WI

 

 

[WITAXLADY]

and on 2023 tax return for the 8889 - you do put the contribution on that line and it does give credit for W-2 amount??!!

 

[TexTaxToo]

Employers can make contributions to an employee's HSA, and employees can make pre-tax contributions through a cafeteria plan.  These are treated the same and both are reported as code W on Box 12 of the W-2 and will generally flow through automatically to the 8889 line 9 - no adjustment on the tax return can be taken for these.

If the employee makes additional (post-tax) contributions, they are reported on line 2 of Form 8889 and an adjustment may be taken.

[GLJEANNE]

W2 flow through is fine, it doesn't really matter what part came from employee vs employer.  It's annoying that ATX has that constant warning to separate.  Sounds like you're doing it right!!

[WITAXLADY]

On line 9 - it says employER - and these are from employee..

so when you click on line 2 to put in what matches box 12 - the contribution goes to line 1 on page 1 and gives a credit -

Who's error?

[jklcpa]

8 minutes ago, WITAXLADY said:

On line 9 - it says employER - and these are from employee..

so when you click on line 2 to put in what matches box 12 - the contribution goes to line 1 on page 1 and gives a credit -

Who's error?

Please see the instructions for form 8889.  Line 9 instructions say to include employer contributions AND those from the employee through a cafeteria plan. That information is on the W-2, box 12, code W.

Line 1 is for the overall limitation for the year.

Line 2 is for contributions made separately by the employee outside of payroll NOT on the W-2.

Doesn't ATX carry the amount automatically from the W-2 and fill in the limitation automatically if it is a full year coverage and you simply indicate it is either self coverage or family coverage?

[mcb39]

There can be both, but separate contributions after tax from the employee do not show up on the W2.  That is information that is given to you by the client.  I think you are fine.  Only occasionally do I have a client who contributes to the HSA after tax.

[jasdlm]

When ATX barks at me about that, I just put a 0 in the employee contribution line (it will accept that) because the employee/employer contributions through the W2 (code W) all count the same, as mentioned above.  Enter a '0' and the error will go away.

[WITAXLADY]

all correct above - but I emphasize maxing HSA's

 

Technically line 9 is still incorrect - as those are both employer (maybe) and employee!! contributions thru a Cafeteria Plan..

 

d

 

[jklcpa]

1 minute ago, WITAXLADY said:

Technically line 9 is still incorrect - as those are both employer (maybe) and employee!! contributions thru a Cafeteria Plan..

d

 

No, only the label for line 9 is unclear to you. Perhaps it should read "contributions made through and by employment".

The instructions for line 9 are very clear. It says this line should include all contributions made by the employer AND by employee through a cafeteria plan.  When the employee contributes through a cafeteria plan offered by the employer, the employer has the funds and acts in the capacity of agent to remit those funds to the HSA on behalf of the employee.

[WITAXLADY]

well I agree with that - but like you show - it is not what it says!!

Best,

Happy taxing!

D/WI