Code W in box 12 of my W2

Forum|Forum|7 years ago
June 1, 2019
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I initially printed out my W2 from my employee site at work and then I received my W2, in the mail, from my employer. The W2 I printed out myself showed the code W in box 12 but the W2 I received in the mail from my employer did not have a W code in box 12. Do I need to include this on my tax form? It is for an HSA account.

TurboTax Deluxe Online

Best answer by BillM223

The amount with code "W" in box 12 of your W-2 is the sum of the amounts that your employer contributed to your HSA AND that you contributed through a payroll deduction scheme. If either you or your employer made contributions to your HSA (as the copy printed at home would seem to indicate), then the W-2 that you received in the mail is incorrect.

On the W-2 that you printed at home, look to see if that W-2 is annotated with the word "Corrected". If so, this is the W-2 you should use. Mark the other one that you didn't use it and put it in your tax file.

But if neither copy shows Corrected, you need to call your HR department and ask them why you have two different versions and which one you should use.

If you or your employer did make contributions to your HSA, then the one printed at home is likely correct, but you need to confirm it. Also confirm that the amount contributed to the HSA (code W) was subtracted form wages in boxes 1, 3, and 5 on the W-2 - that amount should have been removed from your wages on your W-2.

You want to be sure that you are not taxed on these contributions to your HSA.

[minor edit 1/17/2019 11:36 CST]

B

BillM223Answer

Level 15

The amount with code "W" in box 12 of your W-2 is the sum of the amounts that your employer contributed to your HSA AND that you contributed through a payroll deduction scheme. If either you or your employer made contributions to your HSA (as the copy printed at home would seem to indicate), then the W-2 that you received in the mail is incorrect.

On the W-2 that you printed at home, look to see if that W-2 is annotated with the word "Corrected". If so, this is the W-2 you should use. Mark the other one that you didn't use it and put it in your tax file.

But if neither copy shows Corrected, you need to call your HR department and ask them why you have two different versions and which one you should use.

If you or your employer did make contributions to your HSA, then the one printed at home is likely correct, but you need to confirm it. Also confirm that the amount contributed to the HSA (code W) was subtracted form wages in boxes 1, 3, and 5 on the W-2 - that amount should have been removed from your wages on your W-2.

You want to be sure that you are not taxed on these contributions to your HSA.

[minor edit 1/17/2019 11:36 CST]

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W

wesbabko

Level 2

@BillM223 The problem that I see with Box 12 with Code W on W-2 is that before I enter it, my tax liability is $2200. After I enter it, my tax liability becomes $2900. Excuse me???!!!

Why does w-2 box 12c with code W increase my taxable income, or increase my tax liability? It should not affect anything at all (as does Box 12 with code R doesn't), because it is taken out of boxes 1,3 and 5 as income. But when I report it, it adds $700 to my tax liability. (I only contributed about $3200). What is going on here?

Would someone possibly explain this, please?

B

BillM223

Level 15

The IRS considers HSA contributions to be taxable income UNTIL you complete the HSA interview (Search for hsa and jump to it) and show that you had qualifying HDHP (High Deductible Health Plan) for the year.

So, when you enter the box 12 code W amount, your tax will temporarily increase, because the Box 12 code W amount has been added to Other Income.

But don't worry, because when you complete the HSA interview and indicate that HDHP coverage, the HSA contribution will be removed from Other Income and your tax will go back down.

This is one reason why we encourage taxpayers not to watch the Refund Meter too closely, because there are things happening in the background out of sync with what screen you are on.

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