DianeW777
Expert Alumni

Get your taxes done using TurboTax

It depends.  If you received the money back from the HSA plan administrator, then your W-2 from your employer may only show the amount they withheld.  Both the employer and pre-tax employee HSA contributions made through payroll are reported on the Form W-2 in Box 12 with Code W. 

 

Double check with your payroll department or your pay stubs to see if the amount in Box 12 of your W-2 is the full amount contributed for the year.  This will let you know if you must include any of the refund  based on whether Box 12 has been reduced for your excess HSA contributions. 

 

NOTE: The moment that TurboTax detects excess HSA contributions, it adds the excess (if it was part of the code W amount in Box 12 on the W12 as it appears to be in your situation), to Other Income on line 8 of Schedule 1 (1040). You should not need to add the other income. Stop here.  @Dshow

 

If you find you need to add the refund to your income you can use these steps

 

Please follow the instructions below to report Other Income:

  1. Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
  2. Go to the last selection, Miscellaneous Income and click Start
  3. Go to the last option, Other reportable income and click Start
  4. When it asks, "Any other reportable income?" > yes and then type in a description and the amount to report it on your tax return.
  5. TurboTax Online and TurboTax CD/Download will use the same procedure
  6. See the image below.

 

[Edited: 02/04/2022 | 5:42a PST]  See Note above.

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