Employer contribution to HSA on W2

[cadia]

My spouse's W2 does not show employer contribution to HSA in W2 box 12w. Is a corrected W2 required? My W2 shows an employer contribution to HSA in box 12w, that was later deducted by my employer from my HSA account because I changed my health insurance benefit enrollment and was no longer eligible for my employer HSA contribution. Do I need a corrected W2 box 12w to reflect net $0 employer contribution; or should I expect 1099SA from my HSA account? Also Turbo Tax has a field for reflecting HSA contributions by employer not shown on W2. Could we use this field to enter my spouse's employer contribution and the amount my employer deducted from my HSA? It seems like this is a viable way to enter the correct information about how much was contributed, but may not be the most clear/proper way to file. 

[Mike9241]

before we answer, did your nonqualified health insurance cover your spouse?

[cadia]

My spouse and I both were on the same HDHP family insurance plan for all months of 2022. The first pay period of 2022 we were on my insurance before switching to my spouse's insurance for the remainder of the year. Also to be clear the employer contributions I refer to for myself and my spouse are employer paid contributions to the HSA, not our elected employee contributions made from our payroll.

[MarilynG1]

Your W-2 should show you and your employer HSA contributions in Box 12 with a Code W.  If it does not show employer contributions, and you have documentation of the amount your employer contributed, you can enter that amount in the HSA section in TurboTax, as you suggested.  If this applies, you don't need a corrected W-2, though your W-2's should show the employer contribution in Box 12.

It sounds like you did not make personal HSA contributions, since you state the Box 12 amount would be $0 after employer contribution is removed. Does your spouse's Box 12 reflect both employer/employee contributions?  Or just employee contributions?  If you could clarify this, we'll try to help you further. 

You may receive a 1099-SA for the amount that was withdrawn from your HSA by your employer, but if the contribution shows on your 2022 W-2 you should enter it.  Your employer may have added it to your Wages in Box 1, so you may not receive a 1099-SA in that case. 

Here's more info on HSA Contributions. 

[Opus 17]

Let's start with some basics.  If you were both enrolled in a qualifying family HDHP all 12 months of the year, then you each have a personal contribution limit of $7300 (and an overall family limit of $7300), no matter whose name the plan was in.

If your employer paid money into your HSA and then removed from the HSA by your employer because you did not qualify for the matching funds, it should not be reported on your W-2.  You need a corrected W-2.  Otherwise, the IRS will view that you made a contribution that you did not.  That may impact your ability to contribute other funds.  

If your spouse had a cafeteria plan where funds were deducted from her paycheck pre-tax and deposited into the HSA, that should also be reflected in your spouse's W-2.  They need a corrected W-2.  (Technically what is happening is that employees agree to a salary reduction and the employer contributes the difference to the HSA, along with any matching funds.  The box 12 code W amount should reflect the total of all contributions made by payroll plus any matching funds.)

No, it is not proper to report your spouse's payroll contributions as own contributions.  When your spouse makes an HSA election, their salary is reduced which is reflected in their W-2 box 1 wages.  To make the example very simple, if your spouse's salary is $50,000, and she elects a $3000 HSA contribution, and has no other salary adjustments, her box 1 wages would be $47,000.  The HSA contribution is already subtracted from her taxable income.  If you list it as a separate deduction, then you are taking credit twice, you are double dipping, subtracting money from her wages that was already subtracted from her wages by the employer. 

[cadia]

Neither of our W2s accurately reflected employer contributions. We made our family contribution post tax (not from our payroll deductions). Sounds like we both need corrected W2s and to report our post tax contribution as we typically do.