PA Tax Accountants/CPA question

[AvgUser]

I do my Federal and PA State tax through TurboTax. For PA submittal, i redo the state portion via the most god-awful system known to man: MyPath (because i refuse to spend $20 toe-file it via TT)

I have payroll deductions for an HSA account. On the MyPath system, there is a simple question that IF you have an HSA, enter the amount here. Within TurboTax, through the Q&A it performs, TT does not populate the field.

I tried to google and read up on which system is correct, but it is not obvious. In TT, if you do enter it, there are several other forms that appear to be needed on the PA side (Sch 1, SCh O, maybe another form or two). On MyPath, it is a very simple Y/N question and if yes, enter the amount.

Can anyone with a true understanding of the PA Income Tax and HSA’s clarify whether contributing to an HSA can be claimed that simply. If I claim it, it amounts to an increase of ~$250 for me on my PA State return. It seems to good to be true in light of the fact that TT does not claim it for me.

Thank You

 

[Nitt1300]

 

[PSUAVLNC]

Pay the 20 bucks, you'll be much better off.

 

[BW Lion]

I do my Federal and PA State tax through TurboTax. For PA submittal, i redo the state portion via the most god-awful system known to man: MyPath (because i refuse to spend $20 toe-file it via TT)

I have payroll deductions for an HSA account. On the MyPath system, there is a simple question that IF you have an HSA, enter the amount here. Within TurboTax, through the Q&A it performs, TT does not populate the field.

I tried to google and read up on which system is correct, but it is not obvious. In TT, if you do enter it, there are several other forms that appear to be needed on the PA side (Sch 1, SCh O, maybe another form or two). On MyPath, it is a very simple Y/N question and if yes, enter the amount.

Can anyone with a true understanding of the PA Income Tax and HSA’s clarify whether contributing to an HSA can be claimed that simply. If I claim it, it amounts to an increase of ~$250 for me on my PA State return. It seems to good to be true in light of the fact that TT does not claim it for me.

Thank You

First and foremost, in order to contribute to an HSA, you must have a High Deductible Health Insurance Plan (HDHP), which are less common than most health insurance plans.

Assuming you do have an HDHP, you can deduct contributions to an HSA to lower your taxable income for Federal taxes and Pennsylvania. See the link below.

For peace of mind alone, I'd spend the $20 and e-file using the far superior TurboTax.

Deductions and Credits | Department of Revenue | Commonwealth of Pennsylvania

www.revenue.pa.gov

 

[AvgUser]

For peace of mind alone, I'd spend the $20 and e-file using the far superior TurboTax.

1. Yes, i do have an HDHP (I thought they were more common nowadays)
2. Via TT, i get a $400 refund (but it does not claim the HSA for some weird reason)
3. Using MyPath and including the HSA amount gets me $700-ish.

I’m perplexed why TT isn’t taking this for me

 

[BW Lion]

1. Yes, i do have an HDHP (I thought they were more common nowadays)
2. Via TT, i get a $400 refund (but it does not claim the HSA for some weird reason)
3. Using MyPath and including the HSA amount gets me $700-ish.

I’m perplexed why TT isn’t taking this for me

Scraped from the TT Forum.... Be careful you're not double-dipping HSA contributions.

If the contributions to your HSA are through your employer (whether your employer made them or you did through payroll deduction or both), this amount is reported with code W in box 12 of your W-2.

Before the employer prints the W-2, the employer removes the code W amount from Wages in boxes 1, 3, and 5. This is why you don't see a deduction for this amount - because it was never in your income in the first place.

HSA contributions through the employer are a deferral, not a deduction - that it, taxes are deferred until some later date (and as TomYoung alludes to, if the HSA money is spent on qualified medical expenses, it is never taxed at all).

Only if you make contributions directly to the HSA (not through your employer) will a deduct appear on the return - in line 25 on Schedule 1 (Form 1040).

 

[1995PSUGrad]

1. Yes, i do have an HDHP (I thought they were more common nowadays)
2. Via TT, i get a $400 refund (but it does not claim the HSA for some weird reason)
3. Using MyPath and including the HSA amount gets me $700-ish.

I’m perplexed why TT isn’t taking this fo

I don't understand why it isn't asking you about your HSA. I do my sister in-law's taxes with TT and it asked me about her HSA.