What does "Contributions Through an Employer" mean on my HSA tax form?

The "Contributions Through an Employer" line refers to ALL HSA contributions that went through your employer's payroll system. This includes both your own pre-tax contributions that came out of your paycheck AND any money your employer contributed as part of your benefits. So in your case, you would report $4,550 ($3,650 + $900) as "Contributions Through an Employer." This is because both amounts went through your employer's system. Your own contributions were likely deducted pre-tax from your paycheck, which is different from making direct contributions to an HSA outside of your employer. The key here is understanding that "through an employer" means the method of contribution, not who actually contributed the money. This is an important distinction for tax purposes because employer-facilitated contributions are already excluded from your taxable income on your W-2.

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So just to clarify for everyone - HSA contributions on your taxes get reported in different ways depending on HOW you contributed: 1. If the money went through your employer (either their contribution or your paycheck deduction), it goes under "Contributions Through an Employer" 2. If you personally sent money directly to your HSA from your bank account AFTER you got paid, that's reported separately as a personal contribution The IRS cares about this distinction because employer contributions and payroll deductions are already tax-advantaged at the time they happen! Your W-2 income is already reduced to account for this.

Does anyone know if the HSA contribution limits are different if you have a family plan vs individual? I think I might have over-contributed this year and am worried about penalties.

This is such a common confusion point! I went through the exact same thing last year. The key thing to remember is that "Contributions Through an Employer" refers to the METHOD of contribution, not WHO contributed the money. So Carmen, in your case, you'd report the full $4,550 ($3,650 + $900) under "Contributions Through an Employer" because both amounts went through your employer's payroll system. Your $3,650 was deducted pre-tax from your paychecks, and your employer's $900 contribution also went through their system. You should NOT report your $3,650 anywhere else on the form - that would be double counting. Your W-2 should show the total HSA contributions in Box 12 with code "W" which would be that same $4,550. The IRS distinguishes between employer-facilitated contributions (which are already tax-advantaged) and direct contributions you might make from your personal bank account after receiving your paycheck. Since all your contributions went through your employer, they all fall under the "Contributions Through an Employer" category.