I received a corrected w2 which added a W in box 12 It is recognizing my FSA contribution as other income. How do I correct this?

[Joan55]

It seems Turbo tax thinks I have an HSA and not an FSA

[ErnieS0]

W-2 Box 12 is an Health Savings Account (HSA) contribution, not a Flexible Spending Account (FSA) contribution.

W—Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health Savings Accounts (HSAs). 2021 Form W-2.

If you have an FSA, contact your employer about your corrected W-2.

[Joan55]

Can I do anything now?  Will I have to start the return over?  

[BillM223]

Joan, file an extension. You can do through through TurboTax - see this TurboTax Help article. This will avoid any filing penalty at least - you are still responsible to pay the amount due, if any, on May 17th.

The extension to file the paperwork will be October 15th. But don't wait that long.

You do not have to start the return over, but you need to have a heart-to-heart with your employer. If you truly have an FSA, then it should NOT be reported with a code of W in box 12 on your W-2 - doing so means that you can't file until your employer issues you a corrected W-2.

If you actually have an HSA, then you need to review the rules for an HSA - they are quite different than for an FSA.

[jleastman]

I'm starting to argue this same issue with my wife's employer. HR insists that an FSA contribution "through a cafeteria plan" must be reported in Box 12b with code W. 

[DawnC]

FSA contributions go to box 10 or box 12, but not with code W.   Box 12 code W is for Employer contributions (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA).  You (through a cafeteria plan) and your employer can contribute to your HSA, but HSAs (health savings accounts) and FSAs (flexible spending accounts) are not taxed the same, so putting FSA monies in box 12 will affect not only your savings deduction, but also your dependent care credit.    @jleastman

W-2 instructions - share this with her employer - it is possible that your spouse has a health flex spending account (health FSA) and not a health savings account (HSA) - there is a big difference.  How the two differ with regards to W-2 reporting.

Box 12 code W 

FSA - Box 10

[jleastman]

She actually does not have an HSA at all, since the employer refuses to have an HSA for anyone who is 65 or over, regardless of whether they have Medicare or not. So there is ONLY the FSA. 

[HelenC12]

Your wife's employer sent the IRS a copy of your wife's W-2. The IRS will be matching the W-2's they received to your tax return. If you don't show a W-2 with an HSA, you'll get a letter from the IRS which will delay the processing of your return.

• Contact the employer for a corrected W-2. 

File an extension. If you get the corrected W-2 before 4/18/22, you could still file your return before 4/18/22 even if you filed the extension form. The extension form does not mean you have to wait until after 4/18/22 to file.

• Keep in mind: An extension doesn't give you extra time to pay your taxes — but it will keep you from getting a late filing penalty. (You'll still owe interest if you pay after the deadline).