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03-04-2018 06:09 PM
I have an HSA through my employer, and the only contributions to this are my employer's contributions, which shows up as $1200 in box 12 of my W2 as code W. I also received a Form 5498-SA that shows total contributions made in 2017 in box 2 as $1200.
I am using H&R Block's Free File software, and it is asking me a yes or no question "Did you make any contributions (or will you) in 2017 to your HSA?' It seems like I should answer no here since I did not make any, and this end up with a $0 value in deductible contributions, which makes sense because as far as I am aware employer contributions are not deductible.
However, this leads to an error message saying since my W2 form reported contributions, I must fix my Health Insurance section of my tax return. If I go back and answer "yes" to the aforementioned question and include the $1200, this does not seem right either because then it gives me a deduction for that amount and I end up with a higher tax return.
Anyone have any advice or had this happen to them?