Thanks for responding. I think your question must be on the right trick. I went through the HDHP stuff too, that's the family plan part, but now I've clicked all over and back and forth and been to the forms and such too. Now, no matter what I do, the box 12 code 2 does NOT change my taxes anymore. So i am guessing, at some point, I had not completed the the HDHP part. I started a new file to test and upon completing the HDHP questions, the taxes do go down. I believe had some confusion around the poor terminology of "Employer Contributions" and also in the HSA area where is specifically asks "Did you put money into an HSA?" and then says "THIS INCLUDES EVERYTHING YOUR EMPLOYER CONTRIBUTED TOO". It further go on to refer to "Any contributions you "personally made" (not through your employer). All quite confusing when combined with "employer contributions" code on the W2.
All this seems completely backwards to me for the software. The taxes should not change upon entry of the W-2. The taxes should be added if you answer the HDHP questions in a way that would cause your Box12 Code W contributions to not be tax free.
