My employer issued a W2-C to include 12-W for what was contributed to my HSA account

[donchaplin]

Do I need to Amend and refile my taxes, to include the amount my employer contributed to my HSA account?  I would not allow me to manually input the number the first time.

[ChristinaS · Accepted solution]

Yes, you do- especially if you have a Code W in box 12 of your W2, or you have a 1099-SA.

A "W" requires the completion of an additional tax form- Form 8889. If the criteria for having an HSA (a High Deductible Health Plan) are not reported on this form, you will realize the tax implication of a 6% excess contribution penalty.

So, if you don't report your HSA information correctly, the IRS may recalculate your return to add this penalty. While that doesn't mean you would have to pay it back, it does mean you would have to correspond with the IRS about your taxes. You may as well just correct the return to add the 8889 now.

See down below for online amendment instructions for 2016. After you start the amendment process, edit the W2 to add Box 12 code W. (There shouldn't be any reason that you can't select the Code W, as many people do this). Then follow the prompts regarding your High Deductible Plan Coverage...You can also go here right after updating the W2:

• Federal Taxes
• Deductions and Credits
• Medical
• 1099-SA, HSA, MSA

https://ttlc.intuit.com/questions/3402261-how-do-i-amend-my-2016-turbotax-online-return

[donchaplin]

Will I need to amend my Illinois state taxes as well?

[ChristinaS]

NO. This issue wouldn't flow to your IL tax reporting. It doesn't impact IL, so you're good there.