HSA $1000 catch-up -- Is it not deductible ? ?

[Steven]

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)

 

[MichaelB]

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.

 

[Steven]

Thanks Michael !

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

Thanks,
Steve

 

[zinger1457]

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?

 

[Steven]

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.

 

[zinger1457]

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.