kimmychanning
Returning Member

Deductions & credits

 
 

This is the message the company is giving me now:

 

Employee contributions under a Cafeteria 125 plan to a Health Savings Account.  Included on form w2 in box 12-code w.

- Considered 'employer' contributions under federal rule.  Contributions by an employee to an HSA under a Cafeteria plan can be made with pre-tax deductions.  The employee cannot deduct employer contributions on his or her federal income tax return as a medical expense (HSA contribution).  Employee contributions are exempt from FIT SS/MED and FUTA.  Rules for SIT, SUI, LIT vary by jurisdiction.

Code "W" is everything that you have paid towards your HSA plan as a deduction, not a contribution to an HSA since you did not have an actual HSA  account that you were contributing to.  It you look at your W2, it also includes a note to the right side where it states that we are a Cafe 125 HSA plan.

 

I still don't understand what that deduction was and what I am supposed to do....

Thanks for all your help so far!