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?Can my employer is using Code W for 12 for W2 which throws my entire 12 month HSA in as income. My CA taxes went from a refund of $4 to owing $790. I funded my HSA.

 
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2 Replies

?Can my employer is using Code W for 12 for W2 which throws my entire 12 month HSA in as income. My CA taxes went from a refund of $4 to owing $790. I funded my HSA.

Yes, your HSA contribution is considered income by the state. 

MinhT1
Expert Alumni

?Can my employer is using Code W for 12 for W2 which throws my entire 12 month HSA in as income. My CA taxes went from a refund of $4 to owing $790. I funded my HSA.

If you funded your HSA from your wages, your contributions (together with your employer's) are reported in box 12 code W of your form W-2.

 

Your contribution is already subtracted in Wages reported in box 1 of your form W-2, so they are not taxed at the federal evel..

 

Ca does not allow the HSA deduction and you add them back to be taxed.

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