I don't know why TurboTax is making these changes, but let me make these observations:
1. The code W amount in box 12 on your W-2 is removed from Wages in boxes 1, 3, and 5 before your W-2 is printed. This is how "employer" HSA contributions (which include your payroll contributions) are a benefit - they are never in your income at all.
2. Your description makes it sound like the Code W amount is added to the AGI in column A (which could be explained by #1), and then code W amount is removed from AGI in column B but I am not clear on when this happens.
3. You seem to say that the code W amount reduces tax at some point, which would not seem to be right - the code W amount is income, not tax.
Your concerns require some research; please give us a little time to look at this.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
