DawnC
Expert Alumni

Get your taxes done using TurboTax

No, it is not common.  Code DD amounts are for informational purposes only — they don't affect the numbers in your tax return.   The code W however may affect things on your tax return.  It reflects company contributions (including employee contributions through a cafeteria plan) to your health savings account (HSA).    

 

For 2020, your maximum combined contribution to an HSA – that is, the sum of what you, your employer, and anyone else contributed – is $3,550 if you're covered by an individual (self-only) HDHP and $7,100 if you're covered by a family HDHP (maximum contributions increase to $4,550 and $8,100, respectively, if you were at least 55 years of age on December 31, 2020).  There are penalties if you have an excess contribution to your HSA unless the excess amount is withdrawn before the due date of your return, including extensions.  

 

Find out from the employer if they contributed to your HSA account.   If you contributed the maximum through another employer or were not covered by a HDHP in 2020, you will want to get that corrected and the funds removed before April 15th to avoid the associated penalties.   Or they may just need to issue you a CORRECTED W-2.   In any case, you can't e-file a return with a W-2 without wages.  There is a way to enter the code W amount without the W-2 however, see link below.  

 

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