How can i add my HSA contributions since it is not included on my w2 as it should be under box 12 code w?

[ksm13910]

the employer states that they will only add their contribution to the HSA and not my contribution into the HSA in box 12 code W. they say we need to file form 8889 and i cant find a way to add our contribution in turbo tax.

[BMcCalpin · Accepted solution]

First, did your employer remove "your" contributions from payroll deductions from your Wages in boxes 1, 3, and 5? If they did, then the IRS rules require that they add your payroll deductions to their contributions in box 12 with a code of W. Get a corrected W-2.

The IRS says, "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 W-2 Instructions.

Note that the W-2 Instructions are instructions to the employer who is filling out the W-2. Treating your payroll deductions as if for a Sec 125 plan is the old way of doing things - the IRS now wants all employer remitted HSA contributions to be coded with a W in box 12.

If your employer refuses to correct the W-2, you have two options.

First, if the employer did NOT remove your payroll deductions from Wages in boxes 1, 3, and 5 on your W-2, then you can add these as personal contributions.

Go to the HSA interview (Federal->Deductions & Credit->Medical->HSA, MSA Contributions), proceed to the "Let's enter your HSA contributions" screen, and enter your payroll deduction amount in the second line as "personal" contributions.

This will appear on line 12 of Schedule 1 (1040) (2019), removing your payroll deduction contributions from income.

Second, if the employer DID in fact remove your payroll contributions from Wages 1, 3, and 5 (as they should have) but refuses to add this amount to the code W amount in box 12 on the W-2, then do the following:

• Go to the HSA interview (Do a Search (upper right) for hsa and click on the jump-to result)
• Proceed through the screens until you come to a screen with the heading "Did your employer tell you about any other contributions?"
• Click on Yes
• This will expose three more lines
• On the line "Employer and payroll contributions not reported in Box 12 of your W-2" enter the amount of your contributions made by payroll deduction (i.e., the amount that the employer should have added to code W in box 12).

[Edited 3/23/2020 1:57 pm CDT - rewrote answer]