W2 Box12W and 5498-SA

[1421windsong]

My W2 Box 12W has a $$ amount, I contributed, not my employer.  

In the deduction section it asked for any 5498-SA, and said I should enter it there.   Which I did.    If I have a high deductable health care plan, I don't think I should have (said don't do if you have a cafeteria plan, which I think is the same)  

Is this correct?      If so, do I need to file amended return and most likely owe more money?    I just realized I made the same mistake on 2024 as well.   Should I amend that, if so?

[MindyB]

Yes, it sounds like you need to amend.  

The W-2 Box 12 Code W has all payroll contributions, from you, your employer, or both. The only place the payroll contributions should be entered is the W-2 section. 

In the deduction section, this is correct that HSA contributions belong here, however you will only manually enter any contributions you personally made (not through your employer). You will only enter the amounts you directly contributed outside of paycheck withholding in the deduction section. Otherwise, it is double counting the amounts you contributed via your paycheck.

Both personal contributions and payroll contributions appear on the 5498-SA.

Here is some more information on filing amendments: How to File an Amended Tax Return with the IRS

[1421windsong]

Thank you for the clear and easy answer.

So, I need to amend, and I have a few questions

1.  I arranged for my payment to be taken out 4/10 already.   I've read I should wait for that (sometimes I don't see the actual withdrawal for 7-10 days after though).     

When should I do the 2025 amend though?

2.  I assume I should amend 2024 if I made the same mistake?

3.  Would I be correct to assume I'll be paying tax on the $1760 I said I had as a deduction for HSA?

Wish that section was clearer.  Not many people know what a cafeteria plan is.

I appreciate your help!

[CatinaT1]

Yes, you want to wait for your initial return to be completely processed before starting your amendment, including payment made. Yes, you will amend 2024 if you made the same mistake. Assuming you filed that return in 2025, you can go ahead with that amendment now. And yes, you are correct to assume you'll be paying tax on the incorrect deduction for the HSA. 

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines. 

• You must first wait until the initial return is completely processed. 
• You will have to use the same TurboTax account that you used for the original tax return. 
• Once you begin your amendment, you'll see your original return.  
• The refund calculator will start new at $0 and only reflect the changes in the refund or tax due 
• Only make changes to the areas of your return that need to be corrected. 
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment 

Select your product below and follow the instructions. 

Amend TurboTax Online 

Amend TurboTax CD/Download 

[1421windsong]

Thank you

So if my federal return was coming out 4/10, wait for that to be deducted.    If I amend after the 15th, probably penalties will come into play as well?

For the 2024 return, confirming what you stated......

Go to Amend Return,

Will show as 0 (any monies will reflect new $$ owed)

ONLY change section I need to, in the case the HSA 5498-SA (take that out)

Pay any new amount due.

DO I NEED TO MAIL THIS 2024 OR 2025 AMENDED RETURN?    One google site said I need to, maybe on the 2024 one.

Thank you!

[Opus 17]

The tax code treats all payroll contributions as "employer" contributions.  Basically, you agree to a salary reduction and the employer contributes the difference for you.  ("Cafeteria plan" is a tax term for this type of employee benefit plan.)

For 2024 you would start the amending process, remove the deduction (which duplicated your payroll contributions).  You will owe some tax.  You can print and file the amended return by mail, but Turbotax may allow you to e-file a 2024 amended return (I'm not sure about this).  The IRS may assess interest back dated to the original due date of 4/15/25.  If the IRS assesses a penalty, you can ask for a waiver for cause, or if you never owed a penalty before, you can ask for a first-time waiver.  (The penalty can be waived administratively but the interest can't be waived.)

For 2025, you can amend your return and e-file it.  You could possibly amend before your payment is taken, but it would be cleaner and safer to amend after the payment is taken.   You can definitely e-file an amended 2025 return.  If you file the amended return and pay the difference before 4/15/25, there will be no interest or late fees.  If you are more than 1 day late but less than 1 month late, any interest and penalties would be less than 1% of the balance owed.