My employer contributions to my HSA was not reported in box 12 of my W-2, only my contributions were reported.

[johnk44896]

I was told the contributions they made were included in my benefits, thus reducing reportable wages which is reflected in box 1 of my W-2. Do I need to report the amount they contributed? If yes, would that be recorded in Turbo Tax section: Did your employer tell you about any other contributions? Employer and payroll contributions not reported in Box 12 of your W-2.

[BMcCalpin · Accepted solution]

The employer contributions should normally be added to your contributions by payroll deduction and put into box 12 on your W-2 with a code of "W".

If the employer did not include its contribution to your HSA in box 12 with code W, then, yes, you can add that amount to the dialogue that you referenced: "Did your employer tell you about any other contributions? Employer and payroll contributions not reported in Box 12 of your W-2."

However, you should contact your HR department to ensure that in addition to Box 1, that all HSA contributions from your employer and from you through a payroll deduction scheme should have also been removed from Wages in boxes 3 and 5. Otherwise, you will overpay social security and Medicare taxes.

[nphillips74]

I'm having the same issue (my employer didn't include pre-tax contributions to my HSA on my W2 in box 12), but I haven't seen the dialogue "Did your employer tell you about any other contributions? Employer and payroll contributions not reported in Box 12 of your W-2."

How do I get to this dialogue?

[mhunter-myers]

Click past the section where it lists $0 as employer contribution, then there is a screen that asks where there any other contributions to the HSA? Drop down the box and you'll see where it lists three boxes, the last one being contributions not reported in Box 12 of your W-2.

[Jan-Turb0_2o2o]

2019 Turbo Tax: Find the Turbo question "Did your employer tell you about any other contributions?" Don't let the comment reference "apply to a previous year" trip you up. Answer "Yes" and three drop-down questions will populate your screen. Use the last one "Employer and payroll contributions not reported in Box 12 of your W2 $________

The previous replies were great I just kept answering "No" as it seemed to refer to a previous year...I am a little slow on the pick up and thought this might help someone from repeating my error.

[Chance2013]

I’m having this same issue. My employer is not reporting their contributions to my HSA, but is reporting the additional contributions that I make myself via payroll. Is this not a problem? The W2 is incorrect and so my reporting of HSA contributions is incorrect. I’m trying to force my employer to correct my W2, but they’re resisting - should I not be bothering??

[BMcCalpin]

If your employer is not reporting their contributions to your HSA and you live in either New Jersey or California, it is a serious problem, because those states do not allow HSA contributions so TurboTax adds back the code W amount (which you now realize is wrong).

For everyone else, you can correct the situation as described above: on the screen where you are asked, "Did your employer tell you about any other HSA contributions?", you can answer "yes", and then enter the amount on the line which states, "employer contributions that were not reported on your W-2".

This will cause TurboTax to correctly complete the form 8889.

Then have your employer read the instructions for code W in the Instructions for the W-2 on page 20:

"Code W—Employer contributions to a health savings account (HSA). Show any employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to an HSA. See Health savings account (HSA)." The IRS instructions could not be more clear.

[nsl21]

My employer did not report any amount in box 12W but I did have employee and employer contributions. When I enter the amount of the contributions in this box it is not counted towards the HSA deduction in Form 8889, thus I get 0 HSA deduction. Is this correct? I'm adding the amount under 'Other contributions made by me' so that it populates in Line 2 of form 8889, since Line 9 (where employer contributions from box 12W of the W-2 should populate) is zero. This way I get the HSA contribution deduction. Is this correct?

[BillM223]

@nsl21

"My employer did not report any amount in box 12W but I did have employee and employer contributions."

If your employer sent HSA contributions to your HSA custodian from either themselves or from you through payroll deduction, then your employer owes you a corrected W-2.

The instructions for box 12, code W, on the W-2 (on page 20) clearly state:

"Code W—Employer contributions to a health savings account (HSA). Show any employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to an HSA."

Show this to your employer and ask for a corrected W-2.

"I'm adding the amount under 'Other contributions made by me' so that it populates in Line 2 of form 8889, since Line 9 (where employer contributions from box 12W of the W-2 should populate) is zero. This way I get the HSA contribution deduction. Is this correct?"

No, it's not correct, even though it seems like it would be.

The code W amount should appear on line 9, as you surmise.

But what most taxpayers don't realize is that when HSA contributions are reported with a code W in box 12, then this amount is removed from Wages in boxes 1, 3, and 5 on the W-2 before the W-2 is printed by the employer.  

Thus, there is no apparent HSA deduction on the return, because the HSA contributions were never in your income in the first place.

Furthermore, your employer is shortchanging you. If your employer did not remove the code W amount from Wages in boxes 3 and 5, then you paid Social Security tax and Medicare tax on the HSA contributions, when the IRS doesn't require you to pay them.

Now, there is no way to know from looking at your W-2 if your employer removed the HSA contributions from Wages in boxes 1, 3, and 5. You just have to ask them. And while you're asking, ask for the corrected W-2.