Is it correct that my W-2 shows box 12 code W "Employer contributions to a Health Savings Account" when I actually made the contribution?

[IsabellaG · Accepted solution]

Yes, all HSA contributions from your W-2 are counted as made by your employer even if they came out of your pay.  You would only add to that figure any contributions that you made separately,  outside of your W-2. See this answer from TurboTax ChristinaS for more details.

https://ttlc.intuit.com/replies/5998040

[ronaldpalbicki]

this amount seems to be more then my wife contributed to he HSA

[JosephF8]

This is possible if the employer also contributed to the Health Savings Account.

The total amount your spouse contributed may also be on their final pay stub of 2019.

You can also check with the employer.

[jpalanca69]

So the whole amount is considered employer contribution by California?

[BillM223]

@jpalanca69

The code W amount in box 12 on your W-2 is called the "employer contribution" and it is the sum of whatever contributions your employer made and whatever contributions you made by payroll deduction.

California uses the same definition, even though California does not permit the deduction of HSA contributions either through the employer or made directly to the HSA by the taxpayer.

So you will see the code W amount in box 12 of your W-2 added back to California state income, to eliminate that "deduction".

[craigarn]

If you are a non-california resident, with very little taxable income in California  - I see that Turbotax is adding it back in to my California taxable wages.  is this right?

[NCperson]

@craigarn - yes - see the post above your's... California does not allow the HSA contribution to be reduced from income, so since the federal income does permit it, it has to be added back for Calornia income tax purposes.

Stated another way, the HSA contribution is already reducing you taxable wages on your W-2, so the California tax return is adding back the HSA contribution into wages since California doesn't permit the reduction.