@acep1111
When you first enter your W-2 including an amount in box 12 with code W, TurboTax assumes it is taxable until you continue in the program and certify that you had a qualifying HD HP for the entire year, or you provide the details on what months you were covered by an HTHP so that the program can figure out your maximum allowable contribution. TurboTax can’t assume that the money is tax free until you certify that you were in fact enrolled in a qualifying HD HP. This question will come later in the W-2 interview, if you don’t skip around, and it will also come up in the HSA interview on the medical expenses section of the deductions and credits page.
