Question

	Interview Notes Leo Williams is single and 45 years old. Leo works as an IT manager and his Form W-2 shows wages of $47,250. Leo participated in his employer’s self-only coverage High Deductible Health Plan (HDHP) all year. Leo does not have any other health coverage. Leo has had an HSA for two years. Leo’s employer contributed $1,500 in 2018 to Leo's HSA. In 2018, Leo’s aunt contributed $1,900 to Leo's HSA. Leo is a U.S. citizen and has a valid Social Security number. 1. Is Leo an eligible individual for HSA purposes even though he did not make his own contributions? Yes or No? 2. What amount will Leo use to compute his HSA deduction on Form 1040, Schedule 1, line 25? 3. Employer contributions to Leo’s HSA are reported on his Form W-2, box 12, code W.

Answer 1

1. The answer is Yes.
   The contribution towards the Employee's HSA can be made both by employer as well as employee.
   
2. The answer is $1900.
   Line Item 25 is about Adjustment of Income by the amount of HSA deduction. Generally, employer contributions to an eligible employees HSA are excluded from employee's income, hence not counted in this item.
   However, employee need to specifically adjust the HSA contribution of other persons in this line item.
   
3. The answer is Yes.
   Form W-2, Box 12, code W talks about the Employer Contributions to Health Savings Account (HSA). In this question, $1500 is to be reported in that code.