TaxConnections

Ask Tax Question

Does the amount that the taxpayer's health insurer contributes to an HSA count as "Employer contributions made to your HSA for 2014" on Line 9 of Form 8889? The instructions for Line 9 say that employer contributions should be shown in Box 12 of Form W-2 with code W, and there are not any on mine.

I have a high deductible health insurance policy with an HSA. The health insurer contributes (out of the premiums) $62.50 per month to the HSA. The premiums for the policy are paid mostly by my employer with pre-tax funds, but I pay a portion of the premiums. In order to max out the HSA, I send a check to the HSA Bank each year for the difference between the maximum allowed annual contribution ($4,300 for me; self only, over age 55) and the amount the health insurer sends to HSA Bank. In 2014, I sent HSA bank a check for $3,550. The health insurer sent in 12 separate payments of $62.50 for a total of $750. On my W-2, there is nothing with Code W shown in Box 12. My question is whether I need to enter $750 on Line 9 of Form 8889, which would have the effect of reducing the amount of my deduction on Line 13 of Form 8889 and Line 25 of Form 1040 from $4300 to $3550.

On the Form 5498-SA sent to the IRS by HSA Bank, no distinction is made with regard to the source of the total contributions made in 2014 (Box 2). Also, HSA Bank sent me a Year-End Status Report for 2014. It contains this note:

"To complete IRS Form 8889, you may need the W-2 provided by your employer. The W-2 will provide the total pre-tax contributions made to your HSA. The pre-tax contributions will include any employer contributions and employee pre-tax contributions."

As stated earlier, there is nothing on my W-2, marked with Code W or otherwise, stating that there was an employer contribution to the HSA. The are two items in Box 12 on my W-2. One is marked "D" and the other "DD." "D" seems to denote my 401K (TSP) employee contribution, and I think DD is the employer matching portion of the 401K (TSP). The only thing related to healthcare on the W-2 is in Box 14, which contains the following: "NT HEALTH BENEFITS: $1,317.76."
Health Savings Account


Meet Leading Tax Advisors

User Photo John Stancil

Lakeland, Florida, USA

Tax Advisor/CEO

User Photo Peter J. Scalise

New York, New York, USA

Federal Tax Credits & Incentives Practice Leader

User Photo John Dundon, II EA

Denver, Colorado, USA

Tax Director

 

View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

INCREASE KNOWLEDGE WITH EVERY ISSUE OF TAXCONNECTIONS

 

Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today