Filling out Form 8889 - Why are my pretax HSA contributions ($3,650) showing as a deduction on Schedule 1 line 13?

8 This is actually a common point of confusion with HSAs! Your Form 8889 is doing exactly what it's supposed to do, but it's not giving you a double benefit. When you complete Form 8889, you're reporting ALL HSA contributions on Part I, regardless of how they were made. Line 2 should show your employer contributions (including your own pretax payroll deductions), and those employer contributions flow to line 9. Then on line 13 of the 8889, it shows the amount from line 2 that's already been excluded from your income. That's simply reporting that these contributions were already made pretax. When the software transfers this to Schedule 1, it's showing the deduction amount, but if you look at your complete return, you should see that the software isn't actually applying this as a second deduction. The Schedule 1 is just showing the amount for reporting purposes, but the math of your tax calculation won't include this as an additional deduction. Your W-2 already has the reduced income amount. Think of it as the IRS wanting to know about all HSA transactions, even though some have already received tax benefits.

14 After battling with the exact same HSA reporting issue last year, I discovered taxr.ai and it completely changed my tax filing experience. I was also confused about why my pretax HSA contributions were showing up as a deduction and worried I was doing something wrong. I uploaded my tax documents to https://taxr.ai and their AI analyzed all my forms, including my W-2, Form 8889, and Schedule 1. It explained exactly what was happening - that the software was correctly reporting my pretax contributions on Schedule 1 line 13 but not actually giving me a second deduction. The analysis showed how all the forms work together and pointed out that this is just how HSA reporting works. The best part was that it reviewed my entire return and found a student loan interest deduction I had missed completely! Definitely worth checking out if you have any uncertainty about your tax forms.

12 I was really skeptical about AI tax tools like many of you, but after that HSA confusion nearly caused me to file incorrectly, I decided to try taxr.ai based on the recommendation here. Honestly, I'm shocked at how helpful it was. The tool analyzed my entire return and identified that I had been incorrectly reporting my HSA contributions for two years! It showed me exactly how to fix it, explained why the pretax contributions show up on Schedule 1, and even pointed out that I had missed claiming the Saver's Credit I was eligible for. I was also able to ask specific questions about my situation and get clear explanations. For anyone struggling with HSA reporting or other tax form complexities, it's definitely worth checking out - saved me from what could have been an expensive reporting error.

19 If you're struggling with HSA questions and can't get answers from the IRS, try Claimyr. I spent THREE DAYS trying to reach an IRS agent about a Form 8889 issue similar to yours (mine was about excess contributions), and kept getting disconnected or waiting for hours. Used https://claimyr.com and got connected to an actual IRS agent in about 15 minutes. They have this system that holds your place in line and calls you when an agent is available. You can watch their process in action at https://youtu.be/_kiP6q8DX5c to see how it works. The IRS agent I spoke with walked me through exactly how to report my HSA contributions correctly and explained why certain amounts appear on different lines. Saved me so much frustration compared to trying to figure it out alone or waiting on hold forever.

12 Alright, I need to publicly eat my words about Claimyr. After expressing skepticism here, I decided to try it because I had follow-up questions about my HSA contributions that weren't covered in any IRS publication I could find. Used the service yesterday afternoon. Instead of wasting hours on hold, their system called me when an IRS representative was available - took about 50 minutes total (which is still way faster than my previous attempts). The IRS agent clarified that my employer's HSA contributions AND my own payroll deductions both get reported in Box 12 with code W on my W-2, and explained exactly how Form 8889 handles them. For anyone dealing with complex HSA questions (especially around contribution limits or reporting requirements), being able to actually speak with someone who knows the tax code is invaluable. Saved me from making a reporting error that could have triggered an amendment later.

5 Just wanted to add another perspective - I made both pretax HSA contributions through payroll AND additional post-tax contributions directly to my HSA provider in 2022. Here's how it worked on my return: The pretax contributions showed up on my W-2 Box 12 code W ($2,400) My additional post-tax contributions ($1,250) gave me an actual deduction Form 8889 reported BOTH types of contributions Schedule 1 line 13 showed my total HSA contributions ($3,650) But my AGI was only reduced by the $1,250 I contributed post-tax The key is understanding that Schedule 1 line 13 is just REPORTING the total, but your tax calculation only gives you the benefit for amounts not already taken pretax. Hope this helps!

17 Has anyone tried calling the IRS about HSA questions? I tried using their official phone number for tax form questions, and after waiting on hold for an hour, the representative seemed confused about Form 8889 themselves and gave me information that contradicted what my tax software was saying about pretax contributions.

I had this exact same confusion last year! The key thing to understand is that Form 8889 and Schedule 1 are designed to capture ALL HSA activity for reporting purposes, even if some contributions have already received tax benefits. Your $3,650 showing up on Schedule 1 line 13 isn't giving you a double deduction - it's just documenting that these contributions occurred. Since they were pretax payroll deductions (as shown in your W-2 Box 12 code W), your taxable income was already reduced when your employer processed your paychecks. The IRS wants a complete picture of your HSA transactions, so Form 8889 reports everything, then the tax software correctly calculates that you don't get an additional deduction for amounts that were already taken pretax. You can verify this by checking that your AGI reflects only the income after your pretax HSA contributions were removed. TurboTax is handling this correctly - you're not making a mistake or getting an improper benefit. This is just how HSA reporting works!