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HSA $1000 catch-up -- Is it not deductible ? ?
Old 03-03-2012, 05:00 PM   #1
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HSA $1000 catch-up -- Is it not deductible ? ?

My understanding was that the additional $1000 catch-up for Health Savings Accounts was also deductible.

However, line 13 on Form 8889 forces you to report the smaller of Line 2 ($6150) or Line 12 ($7150).

The effect is that it takes away the $1000 catch-up and only allows you to enter the standard $6150 deduction on the 1040 form. (rather than the $7150)

Has anyone come across this discrepancy ? This is driving me crazy!

(I mistakenly posted this in the Health forum so I'm sorry for the duplication)
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Old 03-03-2012, 05:48 PM   #2
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The HSA is not a deduction but an adjustment to income, and the full catch up amount applies. So, looking at your example, you get the standard deduction plus the $7150 adjustment to income.
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Old 03-03-2012, 05:55 PM   #3
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Thanks Michael !

But can you explain why Line 13 on Form 8889 does not allow the extra $1000 ?

Thanks,
Steve
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Old 03-03-2012, 06:38 PM   #4
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Quote:
Originally Posted by Steven View Post

However, line 13 on Form 8889 forces you to report the smaller of Line 2 ($6150) or Line 12 ($7150).
Shouldn't your line 2 total be your actual contribution, $7150?
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Old 03-03-2012, 06:55 PM   #5
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Hey Zinger,

The $7150 was actually what I started to enter on Line 2 . . . until I saw Line 7.

Line 7 instructs you to enter the additional contribution amount there.
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Old 03-03-2012, 07:27 PM   #6
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Quote:
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Hey Zinger,

The $7150 was actually what I started to enter on Line 2 . . . until I saw Line 7.

Line 7 instructs you to enter the additional contribution amount there.
Line 2 is what you actually contributed. Lines 3-12 are used to calculate only what you're allowed to contribute. Line 2 and 12 should be the same if you contributed the max.
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