@ToddKirk wrote:
I have a similar issue that may result in an extension. My daughter's W-2 does correctly deduct the HSA amount listed in block 12 for Code W from blocks 1, 3 and 5 of the W-2. However, the amount in 12 is shown as $300, but the total amount the employer deducted from her pay and deposited to her HSA trust account was $1,050. Shouldn't this entire amount of $1,050 be shown in block 12? Discussions with the employer state the amount listed in block 12 of $300 is supposed to be a percentage of the total $1,050. However, I don't see this in IRS Publication 969.
You are correct, if she had $1050 withdrawn from her pay for a HSA contribution, that amount should be reducing Boxes 1, 3 and 5 on her W-2, and Box 12 should show that amount (plus any employer contributions).
There is no "percentage". So she may need to re-contact her employer, or more to the point, the person doing payroll for her employer.
Hypothetically, it could be accurate if the employer arranged things REALLY badly, but a combination of (1) the second approach is REALLY rare, (2) it would create more work for your employer, and (3) it would cost your employer more money, it is really doubtful if they did it that way.
