Where Do HSA Contributions Go on Form 1040?

A Health Savings Account (HSA) provides a tax-advantaged way to pay for medical expenses. A primary benefit is the ability to deduct contributions from your taxable income, which can lower your overall tax liability. To realize this benefit, you must accurately report your contributions on your federal income tax return.

Information Needed to Report HSA Contributions

Before you can calculate your Health Savings Account deduction, you must collect several pieces of information. The first is your Form W-2, Wage and Tax Statement, from your employer. If your employer made contributions to your HSA or if you contributed through payroll deductions, the total amount will be reported in Box 12 with the code W. This figure represents the pre-tax contributions made through your employer’s plan.

Next, you will need Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information. This form is sent by the bank or financial institution that holds your HSA. It provides a complete summary of all contributions made to your account for the tax year, including those from your employer and any direct contributions you made.

Finally, you should gather your personal financial records for any contributions made directly to your HSA outside of your employer’s payroll system. These are after-tax contributions that you sent to your HSA administrator yourself. Keeping track of these payments is important because they are not reflected on your W-2 but are still eligible for the tax deduction.

Calculating Your HSA Deduction Using Form 8889

The document for calculating your allowable HSA deduction is Form 8889, Health Savings Accounts (HSAs). This IRS form is specifically designed to report all HSA activity, including contributions and distributions.

You will begin by entering contributions you made to your HSA, which are not from your employer, on Line 2 of the form. Employer contributions, which you found in Box 12 of your W-2, are entered on a separate line. The form then requires you to determine your maximum contribution limit for the year based on your type of high-deductible health plan (HDHP) coverage—either self-only or family. For 2025, the limit for self-only coverage is $4,300, and for family coverage, it is $8,550.

If you were age 55 or older at the end of the tax year, you are eligible for an additional catch-up contribution of $1,000, which is also accounted for on Form 8889. The form uses these limits to ensure you do not claim a deduction for contributions that exceed the allowable annual amount. After inputting all contribution sources and limits, Line 13 of Form 8889 shows your final, calculated HSA deduction. This is the number that will ultimately lower your taxable income.

Reporting the HSA Deduction on Form 1040

Once you have completed Form 8889 and determined your total HSA deduction on Line 13, the next step is to transfer this amount to the appropriate section of your main tax return. You must carry over the deduction amount from Form 8889 to Schedule 1 (Form 1040), Additional Income and Adjustments to Income.

The HSA deduction has a specific line on Schedule 1. This is considered an “above-the-line” deduction, meaning it reduces your gross income before you arrive at your adjusted gross income (AGI). Lowering your AGI is beneficial as it can help you qualify for other tax deductions and credits that have income limitations.

After entering the deduction on Schedule 1, the total adjustments to income from this schedule are then transferred to your Form 1040, directly reducing your taxable income. It is a requirement that you attach the completed Form 8889 to your tax return when you file.