Federal Taxes: Taxes for a Health Savings Account 2

mercredi 21 janvier 2015

Employer contributed $2050

I contributed $1300

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Everything, the entire amount was spent on qualified medical expenses.





Had I contributed $0 - then Form 8889 (HSAs) would say that I could have taken the Employer contributed $2050 as deduction on Form 1040, line 25.



But since I contributed $1300 - Form 8889 (HSAs) says that I can ultimately take the "smaller" of the two amounts.







This means I would have been better off by *not* contributing since I could have deducted employer's contribution of $2050 instead of my contribution of $1300 - how does that make sense?





Federal Taxes: Taxes for a Health Savings Account 2

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