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Level 3
posted Jun 3, 2019 12:21:23 PM

Why is my employer refusing to put their contribution to my HSA in Box 12 "W" along with my pre-tax contributions? IRS is clear that both should go in that box.

I contributed $1200 to my HSA through pre-tax payroll deductions and my employer added $500; box 12 shows only $1200. I have e-mailed HR and also called and I can't get a straight answer. Today the HR person said that box 12 is only for pre-tax deductions and their contribution was "post-tax". I have never heard of employer contributions being designated as either post or pre-tax, just employee contributions. She also said they "used to" put the amount in that box but don't anymore. The IRS instructions still say both go in there so I'm at a loss to understand what's going on. What I do if they won't change the W2?

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1 Best answer
Expert Alumni
Jun 3, 2019 12:21:24 PM

If your Employer's HSA contribution was after-tax, you will still be able to add it in the HSA interview in TurboTax  as an additional contribution not on your W-2. 

 

Type 'hsa' in the FIND window, then 'Jump to HSA' to go through this section in TurboTax. 

 

 

 

 

[Edited 03/17/2020 | 2:19 PM]

5 Replies
Expert Alumni
Jun 3, 2019 12:21:24 PM

If your Employer's HSA contribution was after-tax, you will still be able to add it in the HSA interview in TurboTax  as an additional contribution not on your W-2. 

 

Type 'hsa' in the FIND window, then 'Jump to HSA' to go through this section in TurboTax. 

 

 

 

 

[Edited 03/17/2020 | 2:19 PM]

Level 3
Jun 3, 2019 12:21:25 PM

Does the employer's after-tax contribution belong in box 12 on the W2? I'm worried there will be a problem if the 5498-SA sent by the bank to the IRS after the tax due date will say $1700 and box12 will say $1200. Shouldn't the amounts be the same? Also instructions for Form 8889 say that the amount on line 9 should be the amount in box12. Again, will a discrepancy be a problem for the IRS? Thank you for your quick reply above.

Expert Alumni
Jun 3, 2019 12:21:26 PM

The 5498 is for your records only. Should not be a problem, but if you have documentation of $500 contributed by employer, keep it for your records.

Level 3
Jun 3, 2019 12:21:27 PM

Thank you so much for your help. Yes I do have documentation.

Level 15
Jun 3, 2019 12:21:29 PM

For the contribution to be "post-tax" with respect to your employer, your employer must have included the amount in box 1 of your W-2 (which makes no sense if they are treating your payroll deductions to the HSA as pre-tax).

If their contribution is included in box 1 of your W-2, you'll have to report it as your own personal contribution so that you get the deduction for the contribution to effectively convert it back to pre-tax.  If the employer did not include their contribution in box 1, tell TurboTax that your employer told you about other HSA contributions and enter the amount as an amount not reported in box 12 of your W-2.  TurboTax will then include it on Form 8889 line 9 along with the code W amount.