How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.
03-12-2018 11:18 AM - edited 03-12-2018 11:24 AM
My spouse's Form 5498-SA includes contributions made in January 2017 for tax year 2016. These were not made by an employer and are not on a W2. The HSA provider received the check in 2016 but incorrectly coded it as being a 2017 contribution. They corrected it prior to me filing my 2016 taxes and it shows as being coded for 2016 on my HSA statements. However it shows up in Box 2 of the 5498SA as a contribution received in 2017. The tax software has a box for HSA contributions made in 2017 for 2016 that were fon the W@, but I don't see how these should be entered for a check sent directly to the HSA provider?
03-14-2018 11:52 PM
Form 5498-SA is an informational return and the info doesn't get reported with your taxes. If you've addressed this with the HSA provider you should be fine.
03-15-2018 05:00 PM
KarenNC15 is correct that this is just an informational form that doesn’t go directly to your return. If these amounts were not on your W2, you could have reported them in our software in the ADJUSTMENTS & DEDUCTIONS Topic for HAS Contributions. If you made more than your allowable amount depending on your plan type ($6,750 for Family or $3,350 Individual in 2016) and didn’t remove those contributions by the tax deadline, then you might have owed 10% excess contribution penalties and may need to amend your 2016 federal (and possibly state) return(s). It’s possible you wouldn’t need to amend if your refund wouldn’t change, for example, if you had not used up a nonrefundable credit like the child and dependent care credit and the unused amount would offset your new liability.
If you didn’t contribute more than your allowable amount, but you didn’t report these additional contributions on your 2016 return, then you might be eligible to receive a refund from the IRS as this could reduce your 2016 taxable income by a few thousand dollars. If you made only allowable contributions and previously reported this as 2016 contributions, then you don’t need to do anything else with your 2016 return.
Tax Research Specialist