Why does my tax due go up after adding the code W on line 12 of my W2? It went up more after i changed line 2 on form 8889 to be the full amount as this was not an employer contribution, also line 9 did not change. And the taxable income line 1 on the W2 is just the difference between line 2 and the 401K distribution, so our HSA distributions were taxed before filling taxes. Seems like the tax free HSA account is triple taxed.
