• NTTC 4012 pages E-10 to 14 have information on HSA contributions; Pub 969, Health Savings Accounts and other Tax-Favored Health Plans has more.
    • HSA contributions can only be made if the taxpayer was covered by a high-deductible health plan (HDHP), defined for 2025 as an individual deductible of $1,650+, or $3,300+ for a family.
      • Note for CA:  Starting with 2025, all Bronze plans purchased through Covered California are HSA qualified even if they don't meet the deductible requirements.
    • Taxpayers with Medicare are not eligible to contribute to a HSA, even if they have an open HSA. (They can continue to take distributions from that HSA.)
  • Enter the amount contributed to an HSA by the taxpayer in the first dollar amount field on the Form 8889 - Health Savings Account page [Deductions > Adjustments > Health Savings Account]. 
    • The taxpayer may provide Form 5498-SA, showing the contributions during the tax year. If they don’t have this form, the taxpayer’s word is sufficient. 
    • Contributions for the tax year may be made as late as the spring filing deadline. 
    • Note: Any contribution in excess of the maximum deduction is subject to a 6% additional tax, assessed on Form 5329, Part VII, which makes the return out-of-scope.
  • Amounts contributed by an employer are shown on the Form W-2 as code W in box 12. Information entered in the W-2 page in TaxSlayer is not displayed on the 8889-input page, which says “We will automatically pull your employer contributions from your W-2. DO NOT enter amounts from your W-2.” 
    • The information from the W-2 page does show on line 9 of Part I of the printed Form 8889, in the PDF of the taxpayer return.
  • Note for CA returns: CA doesn’t recognize HSAs – see Health Savings Accounts in CA, page 108. TaxSlayer automatically makes the adjustment on CA Schedule CA Part I, Section C line 13.

Created with the Personal Edition of HelpNDoc: Streamline Your Documentation Process with HelpNDoc's Project Analyzer