The Box 12 W Code on your W-2 represents the total pre-tax
contributions to your HSA. Whether it was you, your employer or both of you who
contributed funds into your HSA account, the combined amount goes into this
box. Code W in Box 12 generally contains the full amount of pre-tax contributions to your
HSA, including amounts you elected to contribute.
If your employer contributes to your HSA, those
contributions are pre-tax, which means you didn't pay tax on them. You can't
deduct those contributions on your taxes because you never paid tax on them in
the first place.
If your HSA
contributions were not included in Box 12 of your W-2, those amounts are
deductible because you paid tax on those contributions (there are limits).
These contributions lower your overall taxable income at the end of the year,
which means you get taxed on less income.
The section on HSA Contributions will address and deductible
contributions, distributions and other additional information.
- Here’s how to get started on the HSA Section:
- Go to Federal Taxes (Personal if using Home & Business)
- Deductions and Credits
- Scroll down to the Medical section
- Click Start/Update across from HSA/MSA Contributions
