topic Re: 2% Shareholder and HSA in Self employed

2% Shareholder and HSA

daanabka — Wed, 11 Feb 2026 04:37:50 GMT

I became a 2% shareholder in an S Corporation this year. We have a HDHP and I contributed to my HSA. In previous years (pre-2% shareholder), the HSA contribution was shown in Box 12W since it was taken out pre-tax. In 2023, the HSA contributions were taken out post-tax on my paycheck, but my W-2 still shows the amount in Box 12W. Should this amount be shown in Box 12W? If so, how would I be able to reduce my gross earnings by that amount?

Re: 2% Shareholder and HSA

RobertB4444 — Mon, 05 Feb 2024 21:30:47 GMT

If the amount is shown in 12W then it is saying that it has already been deducted from your income. It is shown on the return after that but you don't get a deduction for it. So the W2 is correct this year. It sounds like it was incorrect in prior years, however. You may want to look into that.

@daanabka

Re: 2% Shareholder and HSA

daanabka — Tue, 06 Feb 2024 00:30:36 GMT

On my W-2, the gross income has only been reduced by my 401(k) contribution. The HSA contributions were withheld post tax on my pay check statements. Therefore, I believe that the HSA contributions should NOT be shown on box 12W. Would you agree?

Re: 2% Shareholder and HSA

ThomasM125 — Tue, 06 Feb 2024 20:36:54 GMT

If the box 12 entry on your W-2 shows code "W" then it would be incorrect, as that would indicate that you had company contributions to your HSA account.