you probably did your w-2 wrong since you are MORE THAN 2% SHAREHOLDER. there is no K-1 entry for this
Greater than 2 percent shareholders of an S Corporation have different requirements when it comes to an HSA. Any contribution made by the employer to the HSA of a greater than 2 percent shareholder must be included as taxable income on the shareholder’s W-2 (box 1), but are not subject to employment taxes. To help offset the impact of including the company’s contribution as taxable wages, the shareholder can take an above-the-line tax deduction on their personal income tax return equal to the contribution. it is not reported in box 12w. of the w-2 rather in box 14. then the shareholder takes the deduction on their 1040
return as if they personally made the contributions
this is similar to how health insurance for 2% shareholders is supposed to be handled with the additional stipulation that the policy must be in the S-Corp name or the S-corp reimburses the shareholder if the policy is in their name. failure and the shareholder can only take the health insurance premiums as an itemized deduction - no deduction for self-employed health insurance. in part IRS Notice 2008-1
