BillM223
Expert Alumni

Deductions & credits

No.

 

I assume that that your HSA contributions were made through your employer, right (code W in box 12 on your W-2)?

 

This code W amount was subtracted from Wages in boxes 1, 3, and 5 on your W-2 before your W-2 was printed. 

 

Therefore, when you show an excess, this amount has to be added back to income on line 8 on Schedule 1 (1040) in order for your income to be correctly reported.

 

You will receive in early 2022 a 1099-SA which will reports the earnings on the excess; this will be added to your 2021 income.

 

I don't know why your employer is sending you a corrected W-2 (are they really?). 

 

However, if they actually do, then what you need to do is file an extension, wait for the corrected W-2, then redo your return. If you file before the get the corrected W-2 to you (IF they get it to you), you will just cause more confusion and will have to amend your return later. 

 

TurboTax is doing it correctly; do not make any changes to the forms.

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