Code W in Box 12b of W-2 includes the TOTAL amount contributed to an HSA, both by the employer and the employee. However, TTAX incorrectly assumes this amount is contributed exclusively by the employer and increases the state taxable income by this amount (CA in my case). Only the employer contribution should increase the state taxable amount. TTAX should ask what was the employer contribution and not automatically assume it is the number reported in Box12b.
