what your employer is doing is wrong. An employer is not allowed to make pretax contributions to the HSA of a nonemployee — in this scenario, the spouse. Any contribution by an employer to the HSA of a nonemployee, including salary reduction amounts made through a Sec. 125 cafeteria plan, must be included in the gross income and wages of the employee.
from iRS Notice 2008-59
Q-26. Are employer contributions to the HSA of an employee’s spouse (who is
not an employee of this employer) excluded from the employee’s gross income and
wages?
A-26. No. The exclusion under § 106(d)(1) is limited to contributions by an
employer to the HSA of an employee who is an eligible individual. Any contribution by
an employer to the HSA of a non-employee (e.g., a spouse of an employee or any other
individual), including salary reduction amounts made through a § 125 cafeteria plan,
must be included in the gross income and wages of the employee.
********************************************************
The issue is not with Turbotax because what you and your employer are doing is not allowed. Should the IRS catch this both you and your employer will have tax issues. the best thing you can do is open your own HSA a/c and then spend down hers before touching yours.
