Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 23, 2025 2:24:57 PM

W2 12W Box shows HSA contribution that was deducted as tax-Free from my payroll. It is not a Employer contribution. Why Turbo Tax considers that as employer contribution?

0 3 990
3 Replies
Expert Alumni
Mar 23, 2025 2:27:06 PM

Box 12 of form W-2 code W reports the sum of both employer's and employee's contributions to your HSA.

 

New Member
Apr 8, 2025 1:33:00 PM

Why doesnt Turbo Tax separate Employee and Employer Contribution in the 12 W entry. This prevents me from receiving the tax benefits of my employee contribution. Can I enter the employer contribution in 12W

Level 15
Apr 8, 2025 1:35:53 PM


@samuelnata wrote:

Why doesnt Turbo Tax separate Employee and Employer Contribution in the 12 W entry. This prevents me from receiving the tax benefits of my employee contribution. Can I enter the employer contribution in 12W


 

Under the tax law, you agree to a voluntary salary reduction, and your employer makes the contributions to the HSA instead.  The contributions are already excluded from your W-2 box 1 wages--they are not taxed, so you don't get an extra tax deduction for them.  This is how the IRS wants it.  If you think your employer did not subtract your voluntary contributions from your W-2 box 1 wages, you have to talk to your employer.