HSAs (Health Savings Accounts)
Instructions on where to enter contributions to an HSA in scenario analysis, along with how to see how much has been contributed on a tax return.
How do I enter HSA contributions in Scenario Analysis?
Where can I see how much was contributed to an HSA?
How do I enter HSA contribution in Scenario Analysis?
Where to enter HSA contribution depends on how the contributions were made. There are two ways to make contributions to an HSA; via payroll deduction or contributing directly to the HSA (not via payroll).
For W-2 employees that contribute to an HSA via payroll deductions, the amount of contribution is entered into the Wages Worksheet as "Pre-tax Deductions to Section 125 plans and Other Pre-tax deductions Not Subject to FICA". You can use a Field Note to differentiate an HSA Contribution from other Pre-tax deductions in this field.
If an individual contributes directly to the HSA (not via payroll deduction), that contribution is entered in the Schedule 1 Deductions (Above the Line) section > HSA Deduction.
Note that if an amount above the maximum is entered, it will show a red warning and indicate the limit of the allowable deduction. This maximum does not coordinate with any amount entered into the Wages Worksheet as a payroll deduction, so use caution if a portion is contributed via payroll and the individual does a separate direct contribution to max it out.
Where can I see how much was contributed to an HSA on a tax return?
The "Observations" section of the Tax Report will list any non-payroll contributions to a taxpayer's HSA as reported on line 2 of Form 8889.
If you have an HSA but contributions are made via payroll deductions, those contributions are not captured on Form 1040, because wage income is reduced by the amount of those contributions on the return. However, you can see any employer contributions on Form 8889 on line 9 as seen below.