I am glad that there are many folks having a same issue. To wrap up,
1. W2 Box 12 W shows the amounts that employee contributed
2. Insurance company such as Cigna, BlueCross, Carefirst etc, is contributing DIRECTLY to the HSA amount each month. My case I got total $1,800 per year which is NOT included in W2 Box 12 W.
3. HSA company (my case HealthEquity) sends 5498-SA form (which is NOT required to report to the tax form, but informational purpose). This form includes $1,800 (5498-SA Box -2: Total contributions made in 202x). Some HSA company like Fidelity does NOT even issue 5498-SA by the end of May (after tax season)
https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/form-5498-SA_HSA.pdf
4. Now the question is where this additional money from the insurance company contributed for us.
Should be 8889 Line 9 with manual input?
or Line 2?
For me, I have NOT filed these money ever (Actually, my accountant never added insurance contributed money and never asked me what to do) However, I also never over-contributed more than maximum amount of HSA each year to be safe. It means my yearly HSA contribution + insurance company paid money never made more than maximum HSA money. For me, I interpreted this way. As I mentioned above, 5498-SA is not required for tax reporting, thus I (or my accountant) didn't include insurance company paid money into 8889.
If you are curious, just search "5498-SA" form from TurboTax, then you will see first msg like below.
"Don't Enter Your Form 5498-SA".
Nevertheless that we don't enter 5498-SA in tax filing, I agree to report insurance contributed money as well in the form 8889 line 9 to make sure that maximum contributed money is NOT more than what we can contribute.
