dmertz - yes you are correct it is a family HDHP coverage.
Thank you for being so detailed with your answer I do appreciate it very much.
The way I understand it we would have to file a W2c and update box 12 with no HSA entry (remove it) and enter the HSA in Box 14 (like the HI )
and also update amounts in Box 1 and Box 16 (increasing the current amounts)
Right now it it seems box 1 includes
60000 wages - 12d 18500 + HI MORE-than-2% shareholder = 54045
HSA 6900 does not seem to be included in box 1 currently.
Just to clarify since it is a MORE-than-2% shareholder contribution the HSA 6900 by the S-corp needs to be moved from 12b W-6900 to box 14 and treat it the same way as the HI in box 14 which is also added to box 1.
Currently it seems to be treated as a cafeteria plan which a Scorp MORE-than-2% shareholder can not participate in .
Next I would have to include it in box 1 .
By including you mean I would have to add it back in and add it to box 1- is this the correct understanding:
Is this calculation below what you mean by being included ?
$60000 (wage ) - 18500 (retirement) + HI 12545 + HSA 6900 = BOX 1 then being 60945
(box1) - box 12D + box 14 + box 14 = new updated amount including entries fier box 14 as wages to MORE-than-2% shareholder which then in return can be deducted on personal return?
and next correct box 16 on the W2 and make it 60945 as well .
