jereputnam[at]gmail.com wrote:

- quote -

Form 8888, which carries to the front of form 1040.
Employee contributions to an HSA are (or should be) reported
as taxable income for form W-2 purposes (and are also
subject to the FICA taxes). Employer contributions do not
affect the employee's gross income at all.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

We have a High deductable insurance plan coupled with an
HSA. The corporation pays for half of the employee's
insurance premiums and the employee pays for the other half
and also funds their HSA.

Here is my question. The premiums are deducted from the
gross earnings and therefore no taxes are paid on that money
by the employee or the employer. Is this true for the HSA
contributions also? If so why the list the amount paid in
the 1040? Wouldn't that be double dipping the same
deduction? Are the contributions that the employer makes
deducted from the gross and the contributions that the
employee makes deducted from the 1040? If that is true then
as an employeer I am paying taxes on the money that the
employees contribute.

Our accountant says she doesn't know anything about HSA's, I
know we need to get a new accountant.

Thanks,

Larry Putnam
PSI

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->