W2 - Box12c - W Question

Forum|Forum|3 years ago
February 28, 2023
3 replies
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I'm going through my taxes and when I plug in my info on my W-2, Turbo tax starts asking me questions about having an HSA, which I don't have. I'm guessing this is because in box 12c - I have a code W, which is normally for HSA accounts, but when I asked my employer they said it was for my All State Long Term Care policy and they double checked with our tax people and they confirmed that it is supposed to go in that spot. But the thing is turbo tax is still reading it like an HSA so I have to go through all these questions about how much I contributed to an HSA and then it gives me an HSA summary, but I DONT have one. Is this correct? I live in Washington State.

BillM223

Level 15

Please have your tax people read the W-2 Instructions on page 20:

"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 Health savings account (HSA)."

It's amazing how often we hear of payroll people who think that any section 125 cafeteria plan goes into Box 12 with a code of W, but ONLY HSA contributions are marked with a code W.

You need a corrected W-2.

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mercycat91Author

Level 2

Thanks for the response. When I looked up "what is a 125 cafeteria plan?"
I saw that it says.

Health savings accounts, including distributions to pay long-term care services.

Would Box 12 - W really not be the correct choice?

Turbo tax also asks me to fill out a 8889-T form and I've never been under a High Deductible Health Plan.

I'm so lost with all of this, lol.

BillM223

Level 15

I have no idea where you got that quote. I assume it was not from the IRS.

In a vague way, it is somewhat justifiable, in that you can pay premiums for long term care plans out of your HSA. But I am not sure that that is what that website meant.

In any case, unless you have a source that is as good as or better than the IRS Instructions, I will go with the IRS.

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