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New Member
posted Feb 23, 2024 6:18:52 PM

Why are the HSA deduction deducted from my paycheck in "Tax-free employer contributions"?

I contributed money to the HSA via my paycheck.  It is showing up in "Tax-free employer contributions" and my "Deduction" is at "0".

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1 Replies
Expert Alumni
Feb 23, 2024 6:30:11 PM

That is the description the IRS uses.  Code W in box 12 of your W-2 represents Company contributions (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA).    Your contributions are pre-tax, so by not paying tax on those amounts, you already got the tax deduction.   

 

Usually, your HSA contribution is reported in box 12 of your W-2 with the code W (Company Contributions to Health Savings Account). TurboTax automatically records this amount in the 1099-SA, HSA, MSA section.

 

Code W reports the combined HSA contributions from you and your employer.   So if you contributed $1,500 to your HSA and your employer matched it dollar for dollar, box 12 on your W-2 would show $3,000 with a code W.