I contributed $6500 to HSA account through my employer in 2019. They contributed $1,500 to total of $8,000. Total on W-2 Box 12 (W) is $8,000. It's showing up as "other income" and taxable on my TurboTax 1040 (line 7a - Other Income) Last year, I contributed similarly and handled same way (though amount was lower) in TurboTax - and nothing was taxed.
My wages were reduced by the $6,500 I contributed (pre-tax). I don't understand why I'm being taxed on this contribution - and on the full $8,000 to boot. My understanding is that there was no change in tax law and no compensation limit as to deductibility. It seems like a bug in the TurboTax software. In looking at 2018 and 2019 W-2's (from same employer), nothing has changed.
I had no distributions out of the HSA, and didn't contribute over the maximum amount in either year.