"It actually means that only $75 out of total HSA contribution of $7025 is tax-free"
This statement is not true. When your W-2 was printed the code W amount in box 12 of the W-2 was removed from Wages in boxes 1,3, and 5 BEFORE the W-2 was printed. That is, your actual income was HIGHER than what was listed in boxes 1, 3, and 5.
But, as you see, your original (actual) income (Wages plus the box 12 amount) is not on your return, only your original income net of the box 12 amount. That is your tax benefit - your contribution as listed with code W in box 12 of your W-2 is never in your income - so this does not have to be listed in box 13 on the 8889.
P.S. box 13 will not have an entry in your case unless you also made direct contributions to your HSA. For taxpayers who make contributions to their HSA only through their employer, this box should be zero because box 2 is zero...
So did you duplicate your entries: once as part of box 12 and again as a direct contribution? You should not enter any part of the amount in box 12 with a code of W anywhere else in TurboTax, like on the screen that asks if you made direct contributions to the HSA...
@icnewer
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