The first question is whether this employer contribution is truly taxable.
Items listed in Box 12 are generally non-taxable. They include health and dental insurance paid by the employer, child care benefits, and HSA contributions.
In order for you to continue receiving contributions to your HSA from Chrysler, you must remain an eligible individual:
- You can't be enrolled in Medicare.
- You can't be a dependent on someone else's tax return.
- You must be covered by a High Deductible Health Plan.
- You cannot have any other health insurance coverage (with exceptions for dental insurance, etc.)
If you are not an eligible individual, then you are right, some of your employer's contributions to your HSA may be taxable.
If you have Medicare, you can still make contributions to an HSA, but they are reduced. A $1,000 contribution from your employer would still be tax-exempt.
If you are truly not an eligible individual under the rules described above, please reply.
