rbynaker
Level 13

@qbteachmt wrote:

Let me try restating this: "The owner made an HSA contribution which was included in the W2."

The Employer made a contribution to the Employee's HSA, which is already on the W2 and part of the payroll and benefits values for the corporation. It isn't part of the S Corp, now. And for the individual taxpayer, it's already on the W2. They don't also get to deduct it, again, individually. It doesn't go on the K-1; it's on the W2 for that employee.

This assumes they did this properly for an employee benefit provision.


I don't know the answer, not sure I've seen this...but since employee benefits are added back for S Corp 2% shareholders it wouldn't be double dipping.  I would think you'd have to figure out a manual override to get this to work out correctly.  I'm not sure whether you would note this on the W-2 somewhere or the K-1 though.

Rick

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