Perhaps I'm not explaining things clearly (or still not getting what's wrong)
My W2 has two entries in Section 12
C- $435.60 (group term life insurance)
DD- Cost of Employer sponsored health care - $4326.21
There is NO "W" entry for HSA contributions.
In the HSA section- my personal contribution of $6637 is entered (of which 674 is excess)
My former employer confirmed that Box 14 on W2 in the amount of $2523.96 included all of my pretax contributions-$1261.44 for health, dental, vision) plus MY payroll HSA contribution of $1262.52
The 5498 HSA form correctly states the combined employer/employee contribution is $1937 (1262.52 for me, 675 from my employer).
The HSA Summary page shows:
Deduction. 5963
Total distributions. 2541
Tax Free employer contributions. $1937.
If I remove the entry from "Employer and payroll contributions not reported in Box 12 of your W-2", then my federal tax goes down by $202 and CA tax goes down by $180. If I reenter the $1937 in Box 12 W- taxes go back to where they were when amount was entered in the HSA section.
