Ah, your employer fouled up. Let's see if we can work around it.
If I got it right, you have a corrected W-2 which does not have a code W in box 12 (code W in box 12 with a dollar amount of $0 is not the same thing, so tell me which it is).
Let's do this:
1. Enter your corrected W-2 as is.
2. Go to the HSA interview (Deductions & Credits->Medical->1099-SA, MSA, HSA). Tell TurboTax that you have an HSA health account.
3. Go through the HSA interview.
4. Enter your 1099-SA for your medical expenses.
5. When TurboTax asks if you took any money out of the HSA to pay expenses, answer YES.
6. When you see the "Let's Enter [name]'s HSA contributions", enter the amount sent to your HSA (the amount with code W on your original W-2, or the sum of what showed up on your paystubs) as a PERSONL contribution.
7. Tell TurboTax that you had HDHP coverage for Jan and Feb, and the type (Self? Family?).
8. When you get to the HSA Summary, it should show your original code W amount as a Deduction, your box 1 amount on the 1099-S as a distribution, and otherwise zeros.
I can't be sure but did you say that you got 2 1099-SAs? One was for medical expenses; what was the other one for?
No matter what, you will have to document all this and stick it in your personal tax archive, in case anyone ever asks. If there are questions, the answer is that your employer incorrectly closed your HSA and pretended that you were retroactively covered by the HMO, even after you started using the HSA. What you did was an attempt to work around your employer's errors, and to arrive at the same tax outcome as it should be.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
