This article will help you with frequently asked questions about Form 1040, Schedule 2 in .
Most lines of this form are calculated using other forms in the tax return.
Why is the return calculating an additional HSA tax?
This usually occurs when your client’s W-2 reports HSA contributions, but you haven’t indicated their type of health plan coverage yet. To enter coverage:
- Go to Input Return ⮕ Deductions ⮕ HSA/MSA/LTC Contracts (1099-SA, 5498-SA) ⮕ Health Savings Accounts (8889)
- For Type of coverage: 1=self-only, 2=family enter a 1 or 2.
Why is an MSA tax calculating?
An additional tax on MSA contributions or distributions may generate if your entries on Medical Savings Accounts are incomplete.
- Go to Input Return ⮕ Deductions ⮕ HSA/MSA/LTC Contracts (1099-SA, 5498-SA) ⮕ Medical Savings Accounts (8853)
- Review the entries to ensure they are correct.
Where do I enter other taxes for line 17z?
- Go to Input Return ⮕ Taxes ⮕ Schedule J, Recapture, Other Taxes.
- Scroll down to the Other Taxes section.
- Enter the amount and a description in Other taxes.