TurboTax might not calculate your 2007 HSA deduction

During tax season, our HSA clients are normally happy with their tax savings.  Unfortunately, this year there are many TurboTax users that are not seeing the savings they have in the past.  There is a system logic problem that doesn’t allow you to enter your HSA contributions directly.  There is another form that TurboTax requires you to complete before your contribution and tax savings will be calculated properly.

If you were covered by an HSA-qualified HDHP effective prior to December 1st, 2007, you could be eligible to contribute up to $2850 per individual or up to $5650 for any family unit for tax year 2007.  In order to get this deduction you have to have your 2007 contributions in prior to April 15, 2008.  These contributions are tax-deductible, similar to an IRA.  If your taxes are calculated properly this can amount to a tremendous savings.

Expect to hear more about this in the coming weeks. In the meantime, here are a few HSA-related help topics from the TurboTax website.