I started contributing to HSA last year and have some doubt about claiming the tax deduction. My situation is as follows:
- I enrolled in HDHP plan starting May 20th 2014. I am still enrolled in the plan. By last month rule I can make contribution for the full year.
- My employer contributed $2000 to the account through payroll deduction (before tax).
- I contributed $800 in February 2015.
While filling form 8889 (using the free file fillable forms website), I enter the following amounts in each line:
- Line 1: Self-only (never had family coverage during anytime in 2014)
- Line 2: 800
- Line 3: 1925 ( = 7 * 3300 / 12 )
- Line 9: 2000
The form then calculates Line 13 to be zero and asks me to enter the amount on line 25 of form 1040. This does not make sense to me as I thought I should be getting tax deduction on the $800 I have contributed to the HSA plan.
I think I should be entering 3300 on line 6 of form 8889. Is this correct?