The dreaded box 12...again

[Guest richf]

Ok, here is my situation:

I contributed $1,950 to my HSA in 2006. My employer put in $1200. There were disbursements of $1065.10. Interest added was $21.75.

3,150.00

21.75

3,171.75 Total

1,065.10 in disbursements.

The balance at the end of 2006 was $2,106.65.

On Form 8889, Line 2 - Should this be zero? On my W-2 the amount is $1950 which is exactly what I put in.

I have read all the other threads regarding how to fill out this form and I am still confused!!!

[papogi]

Form 8889 line 2 is basically for any contributions that you made to your HSA that were not pre-tax. You need to see if your $1950 was pre-tax of not (it is likely pre-tax). Basically, did you already pay income tax on the $1950? Was it deducted from your pay before the federal income taxes were calculated and withheld by your employer? If the $1950 was pre-tax, then Form 8889 line 2 should be zero. Your $1950 becomes and employer contribution when it is pre-tax, so line 9 would be $3150 (1950+1200). If the $1950 was already taxed, then line 2 should have $1950, and line 9 should have $1200.

[Guest richf]

Form 8889 line 2 is basically for any contributions that you made to your HSA that were not pre-tax. You need to see if your $1950 was pre-tax of not (it is likely pre-tax). Basically, did you already pay income tax on the $1950? Was it deducted from your pay before the federal income taxes were calculated and withheld by your employer? If the $1950 was pre-tax, then Form 8889 line 2 should be zero. Your $1950 becomes and employer contribution when it is pre-tax, so line 9 would be $3150 (1950+1200). If the $1950 was already taxed, then line 2 should have $1950, and line 9 should have $1200.

I got in touch with a buddy that is a CPA. Since all my contributions were taken out of my check (pretax) he told me to enter "0" on Line 2 of Form 8889. His explanation was similar to yours. If I have made contributions in the form of writing a check in to my HSA then I would put that amount there. I am sure that whoever came up with this method thought it would be simple. I have read where all it does is create confusion.

I am satisfied that Form 8889 is completed properly now. Thanks for the reply!

[Jacmo]

The employer's $1200 should also be in box 12.