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Posted by skadoo323 on April 12, 2006, 11:28 pm
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cmkey@msn.com wrote:
> skadoo323@gmail.com wrote:
>> This is my first time filing taxes where I have had to deal
>> with a health savings account. I know that I should consult
>> a CPA, which I probably will do tomorrow anyways, but was
>> wondering if anyone could offer any help. First of on my w2
>> in box 12 it states a code of W $519.96. From what I read a
>> code w means that my employer made the contributions, but
>> all the contributions were deducted from my pay and is shown
>> on my pay stubs, so how is that an employee contribution and
>> not a self contribution? The insurance company that my HSA
>> is with sent me a 5498 SA form. On that it states that I
>> should use a form 8889.
>>
>> From what I have been told, I should not be taxed on the
>> amount in my HSA. In Turbo Tax it reported the $519.96 on
>> line21 of my federal 1040. An accountant I know said that
>> the amount should be deductible and reported on line 25 of
>> my federal 1040, hence I won't be taxed on the amount in my
>> HSA.
>>
>> Now what I am confused about is everything in Turbo tax for
>> the form 8889 does not correspond to the form 5498sa given
>> by the HSA's trustee.
>>
>> On my 5498 it shows the following:
>> Box 1 empty
>> Box 2 $519.96
>> Box 3 empty
>> Box 4 empty
>> Box 5 $521.57
>> Box 6 HSA is checked off
>>
>> From those boxes what information corresponds to the
>> information needed for a 8889 form?
>>
>> Basic information that I think is correct when looking at
>> the form 8889 is that only myself is covered under the high
>> deductible plan and my deductible is at $2100.
>>
>> Thanks for any input. This is my first time working with
>> taxes for a HSA and I have never had any problems filing my
>> taxes in the past nor got audited, so I'd like to keep the
>> clean record going.
> I am not a tax expert - but a company bookkeeper who has gone through
> setting our employees up in HSAs and realized early on that
> your question is going to be a very common one.
>
> If your HSA contribution was made pre-tax as part of a
> cafeteria plan you have already avoided paying taxes on it,
> so you cannot deduct it on your tax return.
>
> IRS Notice 2004-2 says "Contributions to an employee's HSA
> through a cafeteria plan are treated as employer
> contributions. The employee cannot deduct employer
> contributions on his or her federal income tax return as HSA
> contributions or as medical expense deductions under section
> 213."
>
> I'm guessing your contributions are within a cafeteria plan
> and that is why your employer put them under code "W."
cmkey...you are correct. thanks so much for the help. i
spoke to a cpa at one of the companies I am currently
consulting at and he said the same thing. thanks for your
confirmation as well. also i did call the irs to verfiy (i
just want to be safe).
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