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posted Feb 10, 2025 2:26:37 PM

The software is incorrectly capturing my HSA contribution as non-deductible. How do I make it deductible?

From box 12 of my W2 code W has an amount of $8,300. This is the sum of my personal payroll deductions and employer contributions to my HSA. I need to break out the deductible portion of this.

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1 Replies
Expert Alumni
Feb 10, 2025 2:32:55 PM

The HSA contributions reported in box 12 of your Form W-2 is not deductible on your tax return.  That is because the funds that were contributed to your HSA are pre-tax.  The amount is not included in your W-2 wages.  Since it hasn't been taxed, you cannot deduct it.  

 

As explained by The HSA Store The Deductibility of HSA Contributions:

 

Employer contributions to an HSA are not considered income, so they're not subject to income tax or payroll tax. If the employee makes contributions via a Section 125 salary reduction arrangement, those contributions are also considered employer contributions, meaning they're not subject to income tax or payroll taxthese contributions show up in Box 12, with Code W). 

 

[Edited to add citation 02/16/25|11:15 pm PST]