I had a health spending acct for 2200. It is listed in line 12 with a W. Is this taxable income?

Question

my hsa is for $2200 for 2006

Answer 1

Health spending accounts are pre-tax contributions, therefore not taxable for federal income (unless you fall into that alternative minimum tax area), but is required to be reported for informational purposes on the W-2. Most states also allow the pre-tax deductions, but not all.

Answer 2

No, that is not reportable income. It is the amount your employer contributed to your HSA in 2006. You may have actually contributed the money but its shown as an employer contribution because it was withheld pre-tax. Either way its not taxable. However, distributions from the HSA are taxable if you don't spend them on qualified health care expenses.