dmertz
Level 15

Deductions & credits

You get the immediate tax benefit by your employer having excluded the code W amount from the taxable amount shown in box 1 of your W-2.  You do not get to deduct it again on your tax return.  Had you not had some of your pay sent to the HSA, the amount in box 1 of your W-2 would have been higher and the taxable income reported on your tax return would have been higher.

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